Proposal: Institutional Yield Segmentation SDK for Credit Markets on Canton
Development Fund Proposal Submission
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Summary
This proposal introduces a DAML-native Institutional Yield Segmentation SDK for the Canton Network that enables the separation of principal and yield rights in tokenized credit instruments. The system allows regulated financial institutions to transfer yield entitlements independently from principal exposure while preserving privacy and synchronized settlement through Canton’s domain architecture.
The framework provides a reusable financial primitive for tokenized bonds, private credit instruments, structured notes, and syndicated loans, enabling programmable credit workflows such as yield transfers, structured credit exposure management, and confidential credit swap–like arrangements.
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Checklist
- [x] Proposal file added under
/proposals/ - [x] Milestones and funding amounts defined
- [x] Acceptance criteria included
- [x] Alignment with Canton priorities described
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Notes for Reviewers
This proposal focuses on building core financial infrastructure primitives for tokenized credit markets on Canton. While public DeFi protocols provide principal/yield tokenization in transparent environments, there is currently no equivalent institutional-grade framework designed for permissioned, privacy-preserving distributed ledgers.
The proposed DAML-based architecture leverages Canton’s synchronization model and selective disclosure capabilities to support structured credit workflows while maintaining confidentiality between counterparties.
The project aims to deliver reusable templates and tooling/sdk for the Canton ecosystem, enabling institutions deploying tokenized credit products to implement structured yield separation without developing custom contract systems.
The team brings experience from Blockchain.com, Chiliz, Mastercard and Institutional blockchain Infrastructure, with additional advisory support from chief executives previously involved in Brevan Howard Digital and Coinbase/Revolut.
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