RedStone Gets 15.775M Canton Coin Grant to Develop Proposed CAPS Privacy Standard

In RedStone’s hypothetical, an oracle publishes a $100 collateral reference price while two banks privately agree to value the collateral at $98 for a repo transaction. RedStone says its proposed Canton standard, CAPS, is designed to keep that negotiated valuation from the data provider. The company has secured a 15, 775, 000 Canton Coin grant to develop it.

• The grant has a stated baseline value of approximately $1.83 million.
• Its 12-month program ties half the funding to adoption milestones.
• Zenith and Memora are planned design partners, with integrations still in development.
• CAPS is a proposal, not a proven production standard.

What CAPS is designed to do

An oracle supplies external data, such as an asset price, to an application or transaction system. CAPS, short for Canton Access and Privacy Standard, is RedStone’s proposed framework for sharing that kind of reference data with institutions while limiting what the provider can learn about how it is used. RedStone describes the proposal in its CAPS framework for private institutional data.

The reference price itself is not meant to be hidden. In RedStone’s example, the oracle publishes $100 as a common benchmark. The banks then privately agree to use $98 as the collateral valuation in their repo transaction. The $98 is a hypothetical negotiated figure. RedStone does not describe it as a haircut or say that a real transaction used CAPS.

RedStone’s aim is to separate the price an oracle publishes from the private terms counterparties negotiate. The company says the provider would know the price it published, but not who used it or why. The materials describing CAPS do not independently show that this privacy claim has been demonstrated in production or verified by an external security review.

RedStone argues that a shared reference price could also reduce uncertainty when counterparties retrieve prices at different times. It proposes potential uses in collateral and margin workflows, tokenized funds, private-market valuations, and licensed market data. These are intended applications, not confirmed deployments.

A grant tied to network use

RedStone announced the award on October 29, 2026. According to RedStone, the Canton Development Fund committee unanimously approved it on September 16. The 12-month program provides 15, 775, 000 Canton Coin, which RedStone assigns a baseline value of approximately $1.83 million.

That baseline is not a fixed dollar payout. The award is denominated in Canton Coin, and RedStone says milestone payments will be adjusted using the coin’s seven-day average price when a milestone is accepted. The announcement does not say when the 12-month program begins.

The grant sets out eight milestones, with half the funding tied to adoption. Actual network use is part of the funding test, not just a hoped-for outcome once the engineering work is done. RedStone’s announcement does not establish that any milestone has been completed or any payment made.

Zenith and Memora are the first design partners, and their integrations remain in development. Zenith’s planned integration concerns pricing used by applications. Memora intends to use CAPS for reserve attestations, evidence relating to the assets backing wrapped tokens. RedStone also says Temple Digital Group plans to test the framework during its rollout. These are plans, not live deployments.

A draft still has to prove itself

RedStone says it first proposed CAPS as a Canton Improvement Proposal in April 2026. The software components are intended to be open source under the Apache License 2.0. The goal is a framework that multiple data providers can use, rather than a system that forces institutions to rely on RedStone alone.

That could benefit institutions if providers adopt a common approach to privacy and licensing. But a proposal does not create competition on its own. Providers have to implement it, applications have to use it, and institutions have to trust its controls in sensitive workflows.

“Shared privacy and licensing framework that enables multiple data providers to serve the network, ” said Viv Diwakar, head of the Canton Foundation, describing the intended outcome.

The key question is how CAPS handles transaction information and whether its design prevents providers from inferring user activity. RedStone describes the intended result, but the information provided includes no independent audit or production evidence to confirm it. For institutions, privacy claims need to hold up under technical scrutiny, not just read well in a proposal.

Institutional tokenization, without the hype math

CAPS is in development as institutional activity on Canton grows. On October 28, 2026, DTCC launched a tokenization service with Canton and its private Besu network as its initial integrations. DTCC says eligible users can create digital representations of securities held at DTC, its depository subsidiary, and convert between traditional and tokenized forms while preserving specified ownership rights, investor protections, and economic entitlements.

DTCC reported that DTC provided custody and asset servicing for securities valued at $114 trillion in 2025. That figure refers to DTC’s underlying custody and servicing business, not securities already tokenized through the new service.

DTCC also says a December 2025 SEC no-action letter covered tokenization of specified securities, including Russell 1000 constituents, certain exchange-traded funds, and U.S. Treasury securities. A no-action letter has a limited scope. It is not blanket SEC approval or an endorsement of tokenization.

The connection to CAPS is contextual. DTCC’s launch shows that institutional tokenization infrastructure is advancing, while CAPS aims to address a data privacy issue that may arise in institutional transactions. Neither development, on its own, shows how much activity will move onchain or proves that CAPS is ready for production.

Key questions about RedStone’s Canton grant

• How large is the grant?

  It is for 15, 775, 000 Canton Coin, with a baseline value RedStone puts at approximately $1.83 million. The dollar value can change because payments are adjusted using a seven-day average coin price when a milestone is accepted.

• Is CAPS live?

  No. Zenith and Memora integrations are in development, and RedStone has not shown that the proposed privacy protections have been independently validated in production.

• What would show that CAPS works?

  Look for a mature public specification and code, an independent security review, and a live deployment with measurable institutional use. RedStone’s grant includes adoption milestones, but the announcement does not show that any have been met.

• Does DTC’s $114 trillion figure represent tokenized securities?

  No. DTCC reported that figure for securities in DTC custody and asset servicing in 2025. It does not measure assets tokenized through the new service.