Canton Strategic Holdings (CNTN) Investor update summary

Q2 network growth and adoption

• Transaction volume and throughput increased, with more cross-application workflows settled per second compared to Q1.

• Institutional engagement expanded, with three new Super Validators added, including Stock Gen, Franklin Templeton, and Further Asset Management, deepening regional and global participation.

• Major institutions like CME, Citadel, and Northern Trust joined as validators, reflecting growing maturity and coordination in digital asset strategies.

• The number of Featured Apps doubled, with decentralized exchanges and marketplaces driving core activity and more real-world assets being brought on-chain.

• Notable trades included HSBC's first tokenized deposit pilot and innovative on-chain repo transactions, highlighting the convergence of DeFi and TradFi.

Governance and protocol updates

• Nine Canton Improvement Proposals (CIPs) were approved, focusing on protocol upgrades, logical synchronizers, and improved token standards.

• CIP-0105 and CIP-0116 introduced locking frameworks, requiring Super Validators and Featured Apps to lock up significant amounts of Canton Coin to maintain status and rewards.

• These frameworks align incentives for long-term participation and filter for quality builders with real economic commitment.

• Nearly 50% of the total Canton Coin supply is now locked, demonstrating strong economic alignment and network traction.

Cashen delegated lock marketplace

• Cashen launched a bilateral marketplace for delegated locks, enabling capital-efficient, non-custodial locking of Canton Coin for Featured Apps.

• The platform streamlines deal negotiation, settlement, and monthly interest payments, removing friction and capital barriers for new builders.

• About 70% of new Featured Apps are securing their locks through Cashen, indicating strong demand and a quality filter for new applications.

• The existence of a liquid market for locks signals network maturity and confidence, with multiple participants willing to support long-term commitments.