Fairmint Launches Observer Nodes on Canton Network, Enabling Oversight for Tokenized Equity

Fairmint solves the $6 trillion private equity market’s biggest problem: how to bring securities onchain without sacrificing privacy or regulatory compliance

Fairmint, the company leading the modernization of private capital markets through tokenized stock infrastructure, announced the launch of Observer Nodes for Onchain Equity on the Canton Network. The initiative delivers transparency, accountability and regulatory visibility into equity moving onchain while preserving privacy.

Fairmint’s Observer Nodes are key to bringing the American financial system onchain and into the future. Traditionally, compliance in private markets relies on delayed filings designed for paper-based securities. Regulators currently lack real-time visibility into vesting, transfers or ownership breaches. When bringing equity onchain, just as individuals wouldn’t want their medical records or bank statements publicly visible, equity transactions contain sensitive information that requires privacy protection. However, complete privacy creates compliance challenges.

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Observer Nodes enable this essential balance by providing the privacy protections companies and individuals require while maintaining the regulatory transparency that ensures market integrity. Observers will access read-only automated tools directly from their active nodes on the network, without permission to view personally identifiable information and can flag when potential violations occur. This approach preserves confidentiality for compliant activity while ensuring regulatory authorities can access material information to maintain fair and orderly markets during investigations.

“Observer Nodes represent the future of securities oversight. For the first time, observers can monitor onchain equity without compromising transaction confidentiality,” said Joris Delanoue, CEO of Fairmint. “This is the balance required for boards of private companies to decide to move equity onchain and another giant leap Fairmint has taken to define what regulated DeFi looks like, laying the foundation for hundreds of billions of dollars supporting the adoption of tokenized stocks.”

The launch directly operationalizes key recommendations from Fairmint’s comprehensive regulatory framework submitted to the SEC Crypto Task Force in May 2025. The framework outlines real-time regulatory observability as a cornerstone for compliant onchain markets. This technology represents a crucial step toward enabling non-custodial broker-dealer frameworks, where smart contracts enforce compliance without traditional custody requirements.

Allowing Observer Nodes transforms compliance from reactive enforcement to proactive monitoring. The technology implements protocol-level standardization with immutable audit trails and programmatic compliance enforcement, which are core elements of Fairmint’s seven-point regulatory modernization framework. This positions global capital markets to lead next-generation securities infrastructure while maintaining enhanced investor protections through real-time violation detection and automated regulatory reporting.

“Fairmint’s Observer Nodes highlight the innovation that Canton was designed to unlock: oversight that is automated, transparent and privacy-preserving,” said Yuval Rooz, Co-Founder and CEO of Digital Asset, creator of the Canton Network. “This marks a major step forward for onchain equities, demonstrating how compliance and confidentiality can coexist to drive adoption of the next generation of financial infrastructure.”