Canton is challenging Ethereum's institutional adoption by criticizing zero-knowledge proofs (ZKPs) as risky for financial systems. Canton argues that ZKP vulnerabilities are hard to detect due to data privacy, posing a threat to financial stability. This stance is part of a broader regulatory positioning campaign, attracting major investors like Goldman Sachs and Citadel.Canton's model relies on trusted operators, which critics argue creates a single point of failure. In contrast, open ZK systems improve security through widespread verification. Despite this, Canton is integrating with LayerZero to enable tokenized assets to move across public blockchains, while maintaining its critique of ZKPs to regulators. This dual strategy aims to secure regulatory approval and limit Ethereum's institutional market access.