Virtu, Tradeweb complete onchain repo using Marshall Islands digital bond
The transaction used the Marshall Islands-issued USDM1 bond as collateral and completed the full repo cycle on the Canton Network in under 10 minutes.
Virtu Financial, M1X Global, and Tradeweb executed a groundbreaking over-the-counter (OTC) repo transaction involving a sovereign digital bond, setting a new precedent in the industry. The transaction, completed on the Canton Network, utilized USDM1, a US dollar-denominated bond issued onchain by the Republic of the Marshall Islands and backed by short-term US Treasurys.
The full repo cycle, including settlement, was accomplished in under 10 minutes, marking the first instance of combining natively issued sovereign collateral with fully onchain atomic settlement. Both Virtu Financial and Tradeweb emphasized that this transaction was the first of its kind to utilize native sovereign collateral in an institutional financing transaction, although the broader adoption of this model remains uncertain.
USDM1, available via Tradeweb, was used as collateral, with institutional custody provided by reputable custodians such as Anchorage Digital, BitGo, and tZERO. The Canton Network, designed for institutional finance, offers privacy and permissioning features suitable for regulated transactions and tokenized assets. This transaction builds upon a previous July example where Tradeweb facilitated the real-time transfer of a tokenized US Treasury on Canton, settling the deal against USDCx.
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