SEC says Canton Coin is a digital commodity, clears limited token issuance

Nov 04, 2026

Canton Coin (CC) has received no-action relief from the U.S. Securities and Exchange Commission’s staff, which classified the token as a digital commodity under its latest regulatory framework.

In a November 3 letter, the SEC’s Division of Corporation Finance said it would not recommend enforcement action over Canton Coin’s programmatic issuance without securities registration, provided the network follows the conditions described in its request.

The decision follows an October 30 submission from Canton’s legal representatives seeking clarity on the token’s regulatory treatment. It gives the network a specific enforcement assurance while relying on the facts presented to the regulator.

Canton Network, developed by Digital Asset, provides blockchain infrastructure for financial institutions handling tokenized assets, payments, and settlement. Its native token supports the network’s operations through a system involving validators and application providers.

SEC explains why Canton Coin qualifies as a digital commodity

The SEC staff based its position on how Canton Coin operates within the network and where the token derives its value.

In the response signed by Deputy Chief Counsel Jonathan Ingram, the division said Canton Coin is “intrinsically linked to and derives its value from the programmatic operation of the Canton Network.”

Canton Network’s institutional partners expand tokenization activity

Canton’s regulatory development follows several institutional projects involving banks, financial market infrastructure providers and investment firms.

On October 28, the Depository Trust & Clearing Corporation launched its tokenization service, initially integrating Canton Network and its private Besu blockchain.

The service lets eligible institutions create tokenized representations of securities held at DTC while retaining existing ownership rights and investor protections.

Twenty financial institutions signed access agreements, including JPMorgan, Bank of America, Fidelity Investments, Morgan Stanley and State Street.

Earlier, Swiss lender AMINA became the first FINMA-regulated bank to offer Canton Coin custody and trading services in May.

Its offering gives institutional customers regulated access to the token through the bank’s existing financial services platform.

Meanwhile, Digital Asset raised $355 million in June through a funding round led by a16z crypto. Investors included Citadel Securities, HSBC, BNP Paribas and Coinbase Ventures.

The financing supported Digital Asset’s plans to develop Canton infrastructure for tokenization, collateral management and settlement.

Institutional investment products have been developing alongside these projects. In May, Bitwise launched a Canton exchange-traded product on Deutsche Börse Xetra.

Trading under BWCC, the European product tracks Canton Coin through Kaiko’s reference rate and carries an annual expense ratio of 0.85%.

In the United States, 21Shares introduced an investment product providing direct exposure to CC during the same month.

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