Consensys launches institutional cross-ledger settlement stack for blockchain networks

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Consensys cross-ledger settlement stack

Highlights

Consensys launched the Sovereign Network Interoperability stack at Devcon Mumbai, enabling banks to settle transactions across independent blockchains without moving assets off their native ledgers.
The stack's Cross Ledger Interoperability Protocol relies on zero-knowledge proofs for cryptographic verification, supporting bridgeless interoperability, collateral mobility, securities settlement, and cross-currency payments.
Consensys continues its institutional infrastructure push by separating MetaMask as an independent business and partnering with ClearToken on tokenized securities settlement following the October 8 announcement.

Interoperability stack targets institutional settlement

As reported by The Block, citing Consensys, the new Sovereign Network Interoperability stack is designed to let banks and other financial institutions settle transactions across independently operated blockchains while keeping assets on their native ledgers. The product debuted at Devcon in Mumbai and supports collateral mobility, securities settlement, wholesale and cross-currency payments, as well as funds and asset servicing.

The company said the stack includes a Cross Ledger Interoperability Protocol built on a decade of research into zero-knowledge proofs. Under that architecture, cross-ledger state and execution are verified cryptographically, which Consensys said enables bridgeless interoperability and avoids moving assets off the original ledger.

Institutions using the system set their transaction requirements and approved counterparties, after which the software identifies an eligible route, coordinates execution across participating ledgers and tracks the result. Consensys President David Cunningham said the product combines protocol expertise, transaction coordination and operational support in one offering to simplify new connections and provide verifiable outcomes.

Broader push into tokenized finance infrastructure

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

The launch extends Consensys' broader institutional infrastructure push. On Oct. 8, the company partnered with ClearToken to develop infrastructure for round-the-clock settlement of tokenized securities and cash.

In September, Consensys also said it plans to separate its consumer and institutional businesses, with MetaMask becoming an independent consumer-focused company while Consensys retains its protocols and institutional infrastructure operations. That restructuring places the new interoperability product within the company's effort to deepen its role in blockchain-based financial market infrastructure.

Our earlier coverage of the Bank of England’s push for “bare metal” recovery planning explained why regulators want major banks to build independent fallback systems that can keep critical services running if core technology is compromised. We also noted concerns that AI is amplifying the scale and complexity of cyber attacks, prompting supervisors to raise expectations for end-to-end operational resilience across the financial system.

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