Canton Approves Token Standard V2, Adding Per-Party Privacy in Batch Settlement and Account-Based Holdings
CIP-0112 extends the CIP-0056 token standard with privacy-enhanced batch settlement, accounts for custodians, mint and burn settlement for funds and stablecoins, and a paused flag.
The Canton Foundation approved CIP-0112, the Canton Network Token Standard V2, on 12 June 2026. The proposal, by Bernhard Elsner and Simon Meier, was created on 31 March and describes itself as a backwards-compatible evolution of CIP-0056, the network's existing token standard.
What V2 adds
- Privacy-enhanced batch settlement. In a multi-leg settlement, each party sees only its own legs: traders see their legs, an asset's administrator sees that asset's legs, and only the executing app sees all of them. The CIP says this follows traditional multi-tier accounting and is not possible with V1.
- Accountable holdings. An
Account structure replaces the beneficial-owner party in holdings, with flexible authorisation for custodians and account managers.
- Delivery versus mint or burn. Special mint and burn accounts allow settlement against newly issued or redeemed tokens, for example subscriptions and redemptions of a fund or a stablecoin.
- Trading flows. Trusted venues can settle trades executed off chain with a single trader action, and committed allocations lock funds to an executor, which supports prefunded trading and order books that settle on chain.
- Easier parsing. A new event log interface emits ERC-20-like events.
- A paused flag in token metadata.
Performance
The CIP gives a worked example with three traders and nine legs. In its baseline, settlement needs 6 transactions and 28 views; fully optimised under V2, 2 transactions and 4 views. These are the proposal's own illustrative figures, not measurements from the network.
Canton Coin and rollout
The CIP says Canton Coin (CC) will implement the V2 interfaces alongside V1, with full V2 support in the Splice wallet interface. V2 is delivered as new major versions of the token standard's Daml packages, so existing V1 integrations keep working. The CIP's own summary: "The V2 token standards are strictly more powerful than the V1 standards."
Digital Asset ran a temporary V2 test network from 2 April 2026, according to a Canton forum thread that logged resets through 1 June. The approval did not come with a MainNet date.
Why it matters
The token standard is what wallets, exchanges and custodians integrate once to support every Canton token. V2 targets the needs that institutions raise most often: keeping trade details private between counterparties, mapping holdings to accounts the way custodians keep books, and settling fund or stablecoin subscriptions atomically. Because it is backwards compatible, existing integrations do not break, but issuers and venues will need to adopt V2 to use the new features.
