Key facts
- Digital Asset and the American Idea Foundation are piloting the RISE program.
- The program uses the Canton Network blockchain to distribute state-administered benefits.
- It is slated to launch in Q1 2027 across three US states, pending federal approval.
- RISE aims to combine fragmented benefits, adjust levels based on income, and track spending.
- The initiative seeks to reduce penalties for recipients as their earnings increase.
Digital Asset, the technology company behind the Canton Network, is collaborating with the American Idea Foundation, founded by former US House Speaker Paul Ryan, to launch a pilot program called RISE. This initiative aims to leverage blockchain technology to streamline the distribution of state-administered benefits across three US states, with an expected launch in the first quarter of 2027.
The RISE program is designed to consolidate various benefits into unified monthly or bi-monthly payments. It will incorporate spending rules for categories such as food, child care, and cash assistance. A key feature of the system is its ability to automatically adjust benefit levels in response to changes in household income, thereby reducing penalties that can discourage recipients from earning more. Participating agencies will gain the ability to track payments, balances, spending, and compliance data through the Canton Network, which will manage rules, permissions, and transactions while safeguarding sensitive information.
Paul Ryan stated that the pilot program's goal is to demonstrate a modernized social safety net by combining fragmented benefits, mitigating penalties for increased earnings, and rigorously measuring outcomes. The specific states and benefit programs involved have not yet been disclosed, and the pilots are contingent upon federal approval.
The Canton Network has been expanding its use cases beyond institutional finance, including projects involving government securities. In April, a proof of concept involving Japanese government bonds as digital collateral was launched by Japan Securities Clearing Corporation, Mizuho, Nomura, and Digital Asset, supported by Japan's Financial Services Agency. Additionally, in July, Canton facilitated a real-time tokenized US Treasury trade between Franklin Templeton and Virtu Financial, with Tradeweb managing execution. Canton Coin (CC), the network's native token used for transaction fees, has a market capitalization of approximately $4.1 billion and has seen a roughly 10% increase in value over the past week.