Proposal: Canton Collateral Control Plane

[cgdusek]

Development Fund Proposal Submission

Proposal file: /proposals/canton-collateral-control-plane.md

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Summary

This proposal creates an open-source, Scala/Daml-native reference control layer for collateral eligibility, haircuting, concentration limits, encumbrance state, substitution, allocation, pre-positioning, release control, and atomic collateral mobility on the Canton Network. It delivers shared collateral infrastructure modeled on central-bank, tri-party, and CCP collateral practice, providing a reusable policy and optimization layer that financing apps, bilateral derivatives apps, tokenized-asset platforms, custodial workflows, and treasury desks can integrate.

Prototype repository: merged-one/canton-collateral-control-plane

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Checklist

• Proposal file added under /proposals/
• Milestones and funding amounts defined
• Acceptance criteria included
• Alignment with Canton priorities described

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Notes for Reviewers

This proposal is scoped as a shared ecosystem collateral utility layer, not a venue, CCP, or proprietary product. The initial funded scope covers:

• collateral policy language and formal invariant catalog
• deterministic policy engine with haircut and concentration-limit evaluation
• best-to-post / cheapest-to-deliver optimization and substitution
• end-to-end Daml workflows for margin call, return, substitution, and close-out
• conformance suite with negative-path scenarios
• public release with Quickstart-based demo environment

A working prototype already exists at merged-one/canton-collateral-control-plane, demonstrating DAR deployment into a pinned Quickstart runtime, a concrete reference token-adapter path, and Quickstart-backed confidential margin-call, substitution, and return flows with machine-readable conformance artifacts.

Feedback is especially welcome on:

• priority collateral workflow families for the initial release
• preferred reference environments and asset adapter targets
• expectations around policy profile coverage (bilateral, tri-party, CCP, central-bank)
• desired format for conformance and qualification outputs