Consensys launches cross-ledger settlement and routing stack for institutional networks

Consensys on Monday announced a new technology stack designed to let banks and financial institutions settle transactions across independently operated blockchains without moving assets off their native ledgers.

Dubbed "Sovereign Network Interoperability," the product was launched at Devcon in Mumbai. It supports collateral mobility, securities settlement, wholesale and cross-currency payments, as well as  funds and asset servicing, according to a statement. 

Consensys said the software stack includes a Cross Ledger Interoperability Protocol, built on a decade of research into zero-knowledge proofs. This architecture ensures bridgeless interoperability, meaning assets stay on their native ledgers while cross-ledger state and execution are verified cryptographically, it added. 

Under the system, an institution specifies its transaction requirements and approved counterparties. The software selects an eligible route, coordinates execution on the participating ledgers and tracks the outcome.

"We are bringing deep protocol expertise, transaction coordination and complete support into one product," Consensys President David Cunningham said in the statement. "The result is a simpler path to each new connection, with verifiable outcomes and clear accountability for keeping the full stack working for years to come."

The product will also support the Ethereum Economic Zone standard, the Inter-Blockchain Communication protocol, and other interoperability technologies, per the statement. EVM-based networks are available now, while Canton connectivity is planned.

The launch follows Consensys' Oct. 8 partnership with ClearToken to develop infrastructure for round-the-clock settlement of tokenized securities and cash. In September, the company also announced plans to separate its consumer and institutional businesses, with MetaMask becoming an independent consumer-focused company and Consensys retaining its protocols and institutional infrastructure operations.