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Virtu, Tradeweb complete onchain repo using Marshall Islands digital bond
The repo cycle settled on Canton Network in under 10 minutes, using the Marshall Islands-issued USDM1 bond as collateral backed 1:1 by short-term US Treasurys.
Virtu Financial, M1X Global and Tradeweb completed an onchain repurchase agreement using a sovereign digital bond as collateral on Canton Network, with the full repo and repurchase cycle settling in under 10 minutes, according to Cointelegraph.
The transaction relied on USDM1, a US dollar-denominated bond issued onchain by the Republic of the Marshall Islands and backed 1:1 by short-term US Treasurys. Cointelegraph reports the bond pays a coupon while it is used as collateral and is structured under New York law as a fully collateralized sovereign obligation.
Both firms said the deal was the first repo to combine natively issued sovereign collateral with fully onchain atomic settlement. Executed between regulated counterparties on Tradeweb, the companies used institutional custody provided by Anchorage Digital, BitGo and tZERO, Cointelegraph added.
Cointelegraph also notes the model aims to put tokenized sovereign debt to use in institutional financing rather than only for issuance or trading, though it remains early-stage and broader adoption in institutional repo markets is unclear. The report links Thursday’s repo to a prior July Canton transaction, and it cites additional August Canton-related activity including a cross-chain swap engine launch and a USD1 stablecoin rollout on Canton.