The Canton Network has been selected to power a three-state pilot program that will combine public benefits into programmable blockchain-based payments, marking one of the first real-world government applications of institutional blockchain technology in the United States.
The pilot, scheduled to begin in early 2027, will use Canton Network technology to coordinate the distribution of combined public benefits across three U.S. states. The program, called RISE, is being developed through a partnership between the American Idea Foundation and Digital Asset, the company that created the Canton Network.
How the RISE Pilot Works
The RISE pilot aims to combine multiple public benefit programs into a single programmable payment system built on the Canton Network. Rather than receiving benefits through separate, fragmented programs, eligible recipients would receive programmable payments that can be automatically directed toward specific uses such as housing, food, healthcare, and education. The blockchain-based system would enforce rules and restrictions on how the benefits can be used, reducing fraud and ensuring that funds reach their intended recipients.
The Canton Network is uniquely suited for this application because it was designed for institutional finance and government use cases. Unlike public blockchains like Bitcoin and Ethereum, Canton provides privacy, compliance, and permission controls that allow governments to maintain oversight of transactions while still benefiting from the efficiency and transparency of blockchain technology. The network coordinates rules, permissions, and transactions while limiting access to authorized participants. For more on blockchain in government, see our coverage of the White House crypto event.
The Three-State Approach
The pilot will initially launch in three states, with the specific states to be confirmed subject to federal approval and state-level agreements. The three-state approach allows the program to be tested in different regulatory environments before potential expansion to additional states or nationwide. If successful, the RISE pilot could serve as a model for blockchain-based benefit distribution across the country.
The involvement of the American Idea Foundation, which is associated with former Speaker of the House Paul Ryan, brings political credibility to the pilot. The foundation has been advocating for reforms to the U.S. social safety net, and the RISE pilot represents an opportunity to demonstrate how blockchain technology can improve the efficiency and effectiveness of public benefit programs. For more on crypto policy, see our coverage of CLARITY Act political dynamics.
Canton Network's Institutional Focus
The Canton Network was created by Digital Asset as a blockchain platform specifically designed for institutional finance. Unlike public blockchains that prioritize openness and decentralization, Canton prioritizes privacy, compliance, and interoperability between financial institutions. The network has been used in pilot projects by major banks and financial institutions for tokenized assets, securities settlement, and collateral management.
The selection of Canton for a government benefits pilot validates the network's approach to blockchain technology. While most blockchain attention has focused on public, permissionless networks, Canton's permissioned model may be better suited for government applications that require privacy and regulatory compliance. The pilot could demonstrate that blockchain technology can be used in government without sacrificing the privacy and control that public agencies require. For more on institutional blockchain adoption, see our coverage of Franklin Templeton's tokenization initiative.
What This Means for Blockchain in Government
The RISE pilot represents a significant step forward for the adoption of blockchain technology in government. While blockchain has been discussed as a potential technology for government applications for years, few real-world implementations have materialized. The three-state pilot could provide concrete evidence of blockchain's value in government, potentially driving broader adoption.
The pilot also demonstrates that blockchain technology can be used for purposes beyond cryptocurrency trading and DeFi. Programmable payments for public benefits could improve the efficiency of government programs, reduce fraud, and ensure that benefits reach their intended recipients. If the pilot is successful, it could lead to the development of similar blockchain-based systems for other government programs, including tax collection, procurement, and grants management. For more on blockchain applications, read our coverage of CZ's tokenization vision.
