Virtu, Tradeweb complete on‑chain repo using USDM1

Virtu Financial, M1X Global and Tradeweb executed an on‑chain repurchase agreement in a recent transaction using USDM1 as collateral, with settlement taking place on the Canton Network. The full repo and repurchase cycle cleared in under 10 minutes between regulated counterparties on Tradeweb’s platform.

USDM1 is a dollar‑denominated sovereign digital bond issued onchain by the Republic of the Marshall Islands. The token is structured under New York law as a fully collateralized sovereign obligation, backed one‑for‑one by short‑term U.S. Treasury securities. The bond pays a coupon while it is held as collateral.

Tradeweb facilitated the trade execution and made USDM1 available through its electronic trading platform. Settlement was completed on Canton, a blockchain designed for institutional finance that supports privacy and permissioning for regulated transactions and tokenized assets. The firms involved described the transaction as the first repo to combine natively issued sovereign collateral with fully onchain atomic settlement, meaning the collateral transfer and cash legs were completed in a single onchain operation.

Custody for the repo was provided by Anchorage Digital, BitGo and tZERO, which the participants said enabled institutional‑grade safekeeping of the tokenized bond. The rapid completion of the full repo and repurchase cycle illustrates the speed of automated onchain settlement in this instance.

The firms involved noted the transaction is an early example and highlighted remaining questions about regulatory treatment, integration with existing custody and settlement systems, and broader dealer and cash‑provider demand for onchain collateral solutions.

Canton has hosted several recent institutional transactions. In July, Tradeweb used the network to settle a real‑time transfer of a tokenized U.S. Treasury from Franklin Templeton to Virtu, settled against a tokenized dollar balance. In August, initiatives linked Canton to other chains and new native stablecoin issuances, and plans have been announced for a 2027 pilot to distribute state‑administered benefits across three U.S. states.