Digital Asset, the creator of Canton Network, and the American Idea Foundation of former U.S. House Speaker Paul Ryan plan to test a blockchain-based system for distributing government benefits in three U.S. states using the Canton Network.
The RISE program is expected to launch in the first quarter of 2027. It will consolidate multiple benefits into monthly payments or two payments per month with spending restrictions on categories such as food, child care, and cash.
According to an announcement published on Friday, the system will automatically adjust benefit amounts when household income changes. Participating agencies will be able to track payment, balance, spending, and compliance information through Canton. Digital Asset stated that Canton will coordinate the rules, permissions, and transactions for benefit distribution while limiting access to confidential information.
Ryan said the pilot project aims to mitigate the reduction of benefits as their recipients' incomes rise:
By consolidating fragmented benefits, mitigating benefit reductions as family incomes rise, and rigorously measuring outcomes, these pilot projects can demonstrate what a modern safety net should look like.
The companies did not name the participating states or specify which benefit programs would be included. They added that the pilot projects still require federal approval.
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Canton Expands Public Sector Use Cases
The RISE program could add a new public benefits use case for Canton. The network's recent growth has primarily been related to institutional finance, including projects with government securities.
In April, Japan Securities Clearing Corporation, Mizuho, Nomura, and Digital Asset launched a proof-of-concept using Canton to test Japanese government bonds as digital collateral, including for cross-border real-time transactions. The project was selected for support under the Japan Financial Services Agency's payments innovation initiative.
In July, Canton was also used to settle a tokenized U.S. Treasury bond transaction between Franklin Templeton and Virtu Financial. Tradeweb provided trade execution and price discovery. The Treasury bonds were exchanged in real-time for USDCx, which Tradeweb called an industry first.
The native token of Canton is Canton Coin (CC). It is used to pay transaction fees via the network's global synchronizer. The token's market capitalization is approximately $4.1 billion, ranking it 23rd among cryptocurrencies, according to CoinGecko's estimate. CC has risen roughly 10% over the past week.
Source: CoinGecko
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