Odaily Planet Daily reports that financial services firm Virtu Financial, M1X Global, and electronic trading platform Tradeweb have completed an on-chain repurchase transaction using USDM1, a sovereign digital bond issued by the Republic of the Marshall Islands, as collateral. The entire transaction was executed on the Canton Network and settled within 10 minutes.
USDM1 is a dollar-denominated, on-chain sovereign bond backed 1:1 by short-term U.S. Treasuries, which accrue coupon payments while held as collateral and constitute a fully collateralized sovereign debt under New York State law. Parties involved state that this is the first repurchase transaction to combine native issuance of sovereign collateral with fully on-chain atomic settlement.
USDM1 is available for electronic trading via Tradeweb, with institutional custody services provided by Anchorage Digital, BitGo, and tZERO. The Canton Network, designed for institutional finance, features privacy and permissioning mechanisms for regulated transactions and tokenized assets. (Cointelegraph)