A consortium of digital assets and major financial institutions completed an on-chain US Treasury repo transaction on a canton network that includes USDC as cash leg and tokenized the finances as collateral.
This trade, running on TradeWeb over the weekend, is positioned as the industry’s first position to enable it to be completely chained within a publicly permitted institutional network.
According to the announcement, the Ministry of Finance was managed by the Deposit Trust Company (DTC), a subsidiary of Deposit Institution Trust & Clearing Corporation (DTCC), and was then mirrored to Canton for use as freely transferable collateral.
USDC was natively minted in the Canton to support transactions, allowing for instant exchanges, and removed traditional banking times and reliance on Fedwire settlements. Saturday’s run demonstrates the possibilities for ongoing financing and collateral mobility outside of the legacy market window.
Participants include Bank of America, Citadel Securities, Société Generale, Virtu Financial, DTCC, Circle, Cumberland DRW, TradeWeb, and more.
The companies described this trade as part of their global collateral network initiative. It seeks to integrate high-quality liquid assets such as the Ministry of Finance into a unified, always-always market infrastructure that combines agency compliance requirements with programmable settlements.
What is this special reason?
Tokenized Treasury has already been issued on public blockchains such as Ethereum, Polygon, Arbitrum, XRP, Avalanches, Stars, etc., but stars have been issued by multiple asset managers and fintechs, but most existing implementations resolve or manipulate one leg from the deposits of major banks and central securities without large participation.
In this case, both cash and collateral were tokenized, atomically settled on the same ledger within a framework designed for authorized institutional use, and directly integrated with established trading venues.
TradeWeb’s platform handled executions with transactions designed to demonstrate technical feasibility while maintaining the confidentiality of participants.
Additional transactions using the same structure are planned later this year as part of a broader testing of network interoperability and privacy features, according to the announcement.
The Canton Network aims to link separate applications and asset types into a single environment for cross-asset payments as a public, interoperable blockchain with permissioned access to regulated entities.
Repository trading forms part of the roadmap, connecting traditional financial infrastructure with settlement rails on the chain for 24-hour market operations.
