What is the Canton Network and why does Digital Asset say it can stop crypto hacks?

The Canton Network is a permissioned blockchain developed by Digital Asset that allows users to set “guardrails” on who can interact with assets. CEO Yuval Rooz argues these controls make it harder for hackers, including state-sponsored groups, to exploit systems compared to fully open networks.

Why are North Korea-linked crypto hacks a major concern for investors?

North Korean hacking groups have stolen billions in crypto and are becoming more sophisticated, using long-term infiltration tactics. This raises risks for DeFi platforms and institutions, as hacks can lead to major losses and shake investor confidence.

What triggered renewed focus on blockchain security in this news?

The $290 million Kelp DAO hack and the freezing of $71 million on Arbitrum brought security risks back into focus. These events highlighted how vulnerable DeFi protocols can be and sparked debate on how much control is needed to prevent attacks.

How does Digital Asset’s Canton Network differ from Ethereum or Solana?

Unlike Ethereum or Solana, which are permissionless (anyone can participate), the Canton Network allows restrictions on users and transactions. This makes it more appealing to institutions but less aligned with crypto’s original decentralisation ethos.

Why are financial institutions interested in permissioned blockchains like Canton?

Institutions have fiduciary duties, meaning they must protect client assets and prevent illegal activity. Canton’s built-in controls help them meet compliance requirements and reduce exposure to bad actors, which is critical for large financial firms.

Is the move toward “guardrails” bullish or bearish for crypto?

It’s mixed: bullish for institutional adoption because it improves security and compliance, but bearish for decentralisation purists who value open, censorship-resistant systems. The long-term outcome depends on which model gains more adoption.

What did Arbitrum’s decision to freeze $71 million signal to the market?

Arbitrum’s action showed that even decentralised networks may intervene to stop hacks, which challenges the idea of full immutability. This suggests DeFi may evolve toward more controlled systems, especially after major exploits.

How are stablecoin issuers like Tether and Circle responding to crypto crime?

Tether has worked with authorities to freeze illicit funds, while Circle has taken a more cautious approach, saying it needs legal backing before freezing assets. This shows different strategies but a shared focus on compliance and security.

Digital Asset touts Canton as anti-hacker fix

Written by Isaac FrancisPublished May. 4 2026Last Updated May. 3 2026

North Korea-linked crypto hacks are unlikely to succeed on the Canton Network due to built-in “guardrails”, according to Digital Asset CEO Yuval Rooz.

Rooz said financial institutions are increasingly focused on preventing illicit actors from accessing blockchain systems, especially after recent DeFi exploits including the $290 million Kelp DAO hack.

“They have to make sure that bad actors cannot engage with their systems,”

Said Rooz, Digital Asset chief executive, pointing to fiduciary obligations driving stricter controls.

The Canton Network allows participants to set restrictions on subnets and assets, which Rooz argues would make it difficult for North Korean hacking groups to operate within its ecosystem.

Debate has intensified across crypto after Arbitrum froze $71 million linked to Kelp DAO attackers, with Rooz defending the move as a necessary trade-off between decentralisation and security.

Rooz added that similar safeguards are already emerging among stablecoin issuers such as Tether and Circle, reflecting a broader shift towards controlled environments.

The growing tension between permissionless systems and security-first design suggests future blockchain adoption may favour networks that prioritise protection against state-sponsored cyber threats.