Virtu Financial, M1X Global and TradeWeb completed an onchain repo transaction using a sovereign digital bond as collateral with full transaction settlement on the Canton network.
The transaction used USDM1, a US dollar-denominated sovereign bond issued by the Republic of the Marshall Islands and backed 1:1 by short-term US Treasurys. The bond pays a coupon when used as collateral and is structured under New York law as a fully collateralized sovereign obligation.
Both firms said it was the first repo to combine a locally issued sovereign bond with a fully onchain nuclear settlement. Executed between controlled counterparties on TradeWeb, the entire repo and repurchase cycle was completed in under 10 minutes.
The transaction puts tokenized sovereign debt to be used as collateral in an institutional financing transaction, only to be used as an asset for issuance or trading, although it remains an early-stage example and it is not yet clear whether the model will see wider adoption across the institutional repo market.
USDM 1 is available through the electronic trading platform TradeWeb, with institutional custody provided by Anchorage Digital, BitGo and tZERO, according to the release.
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Canton Network looks at institutional activity
Canton is a blockchain network designed for institutional finance, aimed at regulated transactions and tokenized assets with privacy and permissioning features.
Thursday’s repo follows a July transaction in which TradeWeb facilitated a real-time transfer of tokenized US Treasuries from Franklin Templeton to Virtu Financial by settling trades against USDCX.
Network activity accelerated in August. FalconX and Interstic launched a cross-chain swap engine that connects Canton to the Ethereum, Solana, and Robinhood chains, while World Liberty Financial launched its USD1 stablecoin natively to Canton.
Digital Assets and the American Idea Foundation, founded by former US House Speaker Paul Ryan, also announced plans this month for a 2027 pilot that would use Canton to distribute state-run benefits to three US states.
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