Derivnex completes OTC swap transaction on Canton Network
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Derivnex completes OTC swap transaction on Canton Network 14 October 2026US Reporter: Matthew Challis
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Derivnex, a post-trade engine for OTC derivatives, has completed the first OTC swap transaction on the Canton Network, marking the launch of Derivnex’s platform onchain.
Derivnex incorporates ISDA’s Common Domain Model (CDM), designed to set a standardised digital representation of derivatives transactions and processes.
Canton provides the shared infrastructure for Derivnex, seeking to enable counterparties to coordinate transaction workflows while maintaining bilateral market confidentiality.
The transaction is a total return swap, with DRW acting as counterparty and Marex as the swap provider, referencing the iBoxx USD Liquid Investment Grade Index, which was tokenised on Canton by Kaiko for the trade.
Kaiko also distributed the S&P Dow Jones Indices’ official index values used by Derivnex for the ongoing valuation of the position, which is said to make this the first OTC derivative to reference a fully tokenised index on distributed ledger infrastructure.
The trade was represented on Canton as a smart contract containing the transaction terms, designed to remain with the trade throughout its lifecycle, intended to give DRW and Marex a shared, synchronised record for managing valuations and other events.
Speaking on the transaction, George Harrington, CEO of Derivnex, says: “OTC derivatives are one of the largest markets in institutional finance, but much of the infrastructure supporting them remains fragmented.
“Completing the first OTC swap on Canton shows how that model can work in a live institutional market.”
Yuval Rooz, CEO and co-founder of Digital Asset, comments: “Derivatives are a natural fit for programmable financial infrastructure because the transaction continues to evolve long after the initial trade.
“Derivnex is demonstrating how counterparties can manage that full lifecycle on shared infrastructure while preserving the controls institutional markets require.”
Derivnex says it initially plans to focus on equity and index derivatives — including index, basket, and single-name products — with future functionality anticipated to connect positions managed by the firm with digital cash and collateral on Canton.
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Image: ImageFlow/stock.adobe.com 