Northern Trust says digital asset infrastructure reaches turning point
Updated
Updated · Markets Media · May 5
Northern Trust says digital asset infrastructure reaches turning point
14 articles · Updated · Markets Media · May 5
Justin Chapman said momentum is strongest in digital cash rails and highlighted Northern Trust’s work with Digital Asset Holdings and the Canton Network.
He said institutions want integrated access to digital and traditional assets, with always-on cash movement improving settlement speed, weekend funding and liquidity management while reducing operational and counterparty risk.
Northern Trust said regulation in the UK and US is becoming clearer, but liquidity and interoperability remain barriers as banks and custodians prepare for wider tokenised-market adoption.
As financial giants build rival networks, will tokenization unify markets or create new digital islands of trapped liquidity?
Is Wall Street's digital asset push a true financial revolution or just the same system on faster, digital rails?
Northern Trust’s $2.21B Q1 2026 Surge Driven by AI, Blockchain, and Tokenized Asset Innovation
Overview
In 2026, Northern Trust partnered with Digital Asset Holdings to leverage the Canton Network, a blockchain designed for regulated financial institutions, to develop advanced custody and asset servicing solutions for tokenized assets. This collaboration also enabled Northern Trust to deploy digital cash rails that support 24/7 programmable cash movement, reducing settlement risk and unlocking liquidity. Regulatory clarity in the US and the UK further accelerated adoption, exemplified by Northern Trust's role as fund administrator for Coinbase’s tokenized credit fund, CUSHY. Combined with embedded AI driving operational efficiency and innovation, Northern Trust is modernizing capital markets through blockchain and AI integration, despite ongoing challenges in scaling and regulatory complexity.