The Defiant - DeFi Podcast Did L2 Fragment Ethereum? - With Yuval Rooz, CEO of Digital Asset, Co-Founder of Canton
Feb 27, 2026
Yuval Rooz, co-founder and CEO of Digital Asset and Canton, brings trading and crypto market infrastructure experience. He discusses whether Layer 2s fragment Ethereum, the tension between composability and privacy, why public chains act as expensive databases, Canton’s selective privacy model for on-chain finance, and tokenized treasuries and real-world asset use cases.
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Canton Is A Network Of Sovereign Ledgers
- Canton is a network of networks where anyone can create Cantons with sovereign rules, enabling infinite scalability while preserving a single UX for cross-Canton composition.
- Smart contracts on Canton dictate application behavior rather than the layer one forcing rules.
Atomic Cross-Canton Composability Replaces Risky Bridges
- Canton enables atomic composability across distinct Cantons so multi-ledger DVP trades settle or fail together without off-chain bridges or solver risk.
- Rooz contrasts this with ERC-20 tokens split across L2s where cross-chain settlement is not a blockchain transaction.
Pay For Privacy And Composability, Not Simple Transfers
- Using Canton costs more than a private database but yields private composability that is cheaper than replicating real-world legal/operational workflows off-chain.
- Rooz frames public chains as pricey but justified when you need cross-asset composability with privacy.