Virtu Financial, M1X Global and Tradeweb have completed an on-chain repurchase transaction using USDM1, a digitally issued sovereign bond from the Marshall Islands, as collateral. The deal was fully settled on Canton Network within 10 minutes. The parties said the transaction marks the first case combining natively issued sovereign collateral with fully on-chain atomic settlement.
USDM1 is a U.S. dollar-denominated sovereign bond issued on-chain by the Republic of the Marshall Islands. It is backed 1:1 by short-term U.S. Treasuries, continues to pay coupons while posted as collateral, and is structured under New York law as a fully collateralized sovereign debt instrument. The bond is made available through Tradeweb, while custody is handled by Anchorage Digital, BitGo and tZERO.
The report also places the transaction in the context of recent activity on Canton. In July, Tradeweb facilitated a real-time transfer of tokenized U.S. Treasuries from Franklin Templeton to Virtu Financial on the network. Since August, FalconX and Interstice have launched a cross-chain swap engine linking Canton with Ethereum, Solana and Robinhood Chain, while World Liberty Financial has natively issued its USD1 stablecoin on Canton.
Virtu Financial, M1X Global and Tradeweb have completed an on-chain repurchase transaction using USDM1, a digitally issued sovereign bond from the Marshall Islands, as collateral. The transaction was fully settled on Canton Network within 10 minutes.
The parties said it was the first case to combine natively issued sovereign collateral with fully on-chain atomic settlement.
USDM1 used as collateral
USDM1 is a U.S. dollar-denominated sovereign bond issued on-chain by the Republic of the Marshall Islands and backed 1:1 by short-term U.S. Treasuries. The bond continues to pay coupons while it is posted as collateral, and it is structured under New York law as a fully collateralized sovereign debt instrument.
The bond is offered through the Tradeweb platform. Custody services are provided by Anchorage Digital, BitGo and tZERO.
Canton activity before the deal
Canton is a blockchain network built for institutional finance, with privacy and permissioning features.
Before this transaction, Tradeweb said it had facilitated a real-time transfer of tokenized U.S. Treasuries from Franklin Templeton to Virtu Financial on Canton in July. Since August, FalconX and Interstice have launched a cross-chain swap engine connecting Canton with Ethereum, Solana and Robinhood Chain. World Liberty Financial has also natively issued the USD1 stablecoin on Canton.
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