Ethereum on Canton
Simple settlement rails
Bringing Ethereum assets into the Canton ecosystem
Today: cETH. Next: selected ERC-20 assets with 1:1 backing
cETH Overview
ETH for Canton apps — broad on-chain utility
- • Margin and secured positions
- • Risk-managed collateral flows
- • Supports capital efficiency
- • Money markets and credit lines
- • ETH funding legs for strategies
- • Clear issuance/redemption path
- • LP positions on trading venues
- • Tighter spreads via arbitrage
- • Better price discovery for ETH
- • Spot markets and swaps
- • Routing + aggregation friendly
- • Supports hedging and execution
How cETH works
A deterministic issuance and redemption pipeline: explicit finality, policy checks, and recoverable execution
Observe
Track on-chain events with reorg-aware checkpoints and conservative finality
Validate
Apply limits, allowlists, and messageId replay checks before execution.
Execute
Idempotent mint/redeem with persistent state and an auditable trail
Trust & Transparency
Conservative finality
Deposits are ingested only after explicit confirmation windows. Reorgs are detected via checkpoint hashes and handled with rollback + rescan
Policy controls
Pre-execution validation enforces router/token authenticity, min/max bounds, and daily caps. Destination allow-lists apply, and unknown states fail closed (processing pauses, not proceeds)
Recoverable operations
messageId provides exactly-once effects via idempotent execution and persistent state. Checkpoints make restarts and partial failures recoverable by construction
Built for Canton. Backed by Ethereum
FAQ
What is cETH?+
cETH is a 1:1 redeemable representation of ETH on Canton. It's designed to be usable across Canton applications with clear issuance/redemption paths and audit-first operations.
Who issues cETH?+
cETH is issued via a controlled mint/redeem process operated by Rails. The system uses strict validation, limits, and allow-lists to enforce policy and prevent unauthorized issuance.
How is 1:1 backing maintained?+
Each unit of cETH corresponds to one unit of ETH held in designated reserves. Minting is only performed against observed and confirmed ETH deposits, and redemption burns cETH prior to releasing ETH.
How do I verify reserves?+
Reserves are verifiable on-chain: you can independently check the reserve address balances and compare them to cETH supply on Canton. We publish the canonical reserve addresses and supply references for reconciliation.
How do minting and redemption work?+
Minting is triggered after confirmed ETH deposits and policy checks. Redemption burns cETH on Canton and releases ETH after validation, with end-to-end tracking by messageId and an auditable execution trail.
What does "conservative finality" mean?+
We only act on events after an explicit confirmation window (safe-head processing), reducing reorg risk. If a reorg is detected, the system rolls back to a safe checkpoint and deterministically rescans before proceeding.
Will Rails support other assets?+
Rails will extend the same issuance/redeem rails to additional primary ERC20 assets under explicit policy and operational controls.
Request access
Docs + test environment for Canton integration