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Real-time treasury funding executed directly on the blockchain for the first time

Enables continuous funding and round-the-clock collateral flexibility.

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On-chain Financing of Treasuries Performed Successfully in Real Time for the First Time
On-chain Financing of Treasuries Performed Successfully in Real Time for the First Time

Real-time treasury funding executed directly on the blockchain for the first time

A groundbreaking transaction has taken place on the Canton Network, marking a significant milestone in the evolution of capital markets. This transaction, involving a consortium of leading financial institutions, has demonstrated the potential of blockchain and stablecoins to transform U.S. Treasury financing, enabling 24/7 atomic on-chain settlement.

The successful transaction, which took place on a Saturday, showcased the ability to conduct financing outside standard market hours. U.S. Treasuries held at the Depository Trust Company (DTC), a subsidiary of DTCC, were tokenized and used as collateral on the Canton Network. USDC stablecoin, minted natively on Canton, served as the cash leg, allowing for an instant exchange on-chain without off-ledger cash limitations.

The financial institutions involved in this milestone transaction include Bank of America, Citadel Securities, DTCC, Societe Generale, Tradeweb, Circle, Cumberland DRW, Virtu Financial, and Hidden Road. These institutions collaborated to complete the repo financing using their Treasuries custodied at DTC, with Tradeweb’s execution platform utilized for the trade.

Justin Peterson, Chief Technology Officer at Tradeweb, stated that the successful completion of this transaction marks a significant step toward 24/7 trading in these markets. Kelly Mathieson, Chief Business Development Officer at Digital Asset, said that the first live transaction is a foundational step in building the Global Collateral Network on the Canton Network, demonstrating how market participants can unlock real-time collateral mobility and round-the-clock financing using assets on chain.

Dan Eckstein, Head of Rates Sales at Virtu Financial, stated that this landmark transaction represents a giant leap forward in how market participants can maximize their collateral utility on the Canton Network. Chris Zuehlke, Partner at DRW and Global Co-Head of Cumberland, expressed that the execution of real-time, on-chain financing of tokenized US treasuries against USDC lays the foundation for how blockchain is unlocking 24/7 funding.

Kash Razzaghi, Chief Business Officer at Circle, stated that the successful use of tokenized U.S. Treasuries and on-chain settlement via USDC highlights the power of collaborative innovation across traditional and digital financial institutions. Brian Steele, Managing Director, President, Clearing & Securities Services at DTCC, stated that this transaction underscores DTCC's commitment to advancing infrastructure that meets the market and the moment.

Sonali Theisen, Global Head of FICC E-Trading and Markets Strategic Investments at Bank of America, expressed excitement about collaborating in this initiative to explore new applications of blockchain within traditional finance for the benefit of institutional clients.

This transaction represents a foundational activation for the broader Canton Network Working Group, encompassing traditional financial institutions and digital asset market participants. It marks a foundational step towards building capital markets where high-quality liquid assets, such as UST, are available and usable at all times. This heralds a more efficient and accessible global financial system that blends institutional scale with blockchain programmability.

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