Groundbreaking On-Chain US Treasury Financing Completed by Digital Asset on Canton Network
In a significant advancement for the financial technology landscape, Digital Asset, in a collaboration with a consortium of prominent financial institutions, has successfully executed a pioneering transaction on the Canton Network. This groundbreaking achievement enables the real-time, fully on-chain financing of U.S. Treasuries (UST) using USDC as cash collateral. Executed on Tradeweb, this transaction not only surpasses previous on-chain repo activities but also introduces a paradigm shift in how liquidity can be accessed around the clock.
The key innovation here is the execution of a live transaction entirely on-chain, a feat that allows for true 24/7 liquidity. By utilizing USDC as the cash leg and UST as collateral, this approach eliminates the time constraints imposed by traditional markets, which previously restricted trading to specific hours. This real-time financing capability is critical for creating an interoperable capital markets infrastructure that is responsive to the needs of modern investors.
Members of this pioneering working group include financial leaders like Bank of America, Circle, Citadel Securities, Cumberland DRW, Digital Asset, The Depository Trust Clearing Corporation (DTCC), Hidden Road, Societe Generale, Tradeweb, and Virtu Financial. Their collaborative efforts illustrate a robust commitment to driving innovation and modernizing the financial landscape.
The impact of this transaction is profound. It signifies a foundational step toward the establishment of capital markets that allow for high-quality liquid assets such as UST to be utilized continuously, without the limitations imposed by outdated practices. Through real-time financing solutions and the seamless mobility of collateral, the transaction enhances market efficiency, accessibility, and utility. This endeavor merges the traditional finance sector with decentralized finance (DeFi), harnessing institutional trust and scale alongside the agility and programmability that blockchain technology offers.
Key highlights from this transaction include the utilization of real-world assets (RWAs) where prime brokers hold client UST within custodied accounts at a subsidiary of DTCC. These prime brokers enabled their clients to create on-chain UST on the Canton Network, thus unlocking its potential as collateral that is freely transferable and easily accessible.
Furthermore, native on-chain USDC liquidity was specifically minted and redeemed on the Canton Network during this transaction to demonstrate its capabilities while ensuring near-instant liquidity. The trade was executed on a Saturday, demonstrating the feasibility of accessing financing outside the traditional global settlement windows—a feature not previously available in this context.
This transaction is more than just an individual achievement; it represents a foundational activation for the broader Canton Network Working Group, which encompasses both traditional financial institutions and participants in the digital asset market.
Using Tradeweb’s advanced execution capabilities, market participants successfully completed this landmark transaction, illustrating the importance of deep liquidity, operational efficiency, and seamless integration, all essential for on-chain U.S. Treasury repo trading in real time. Institutional investors can now access automated financing outside of market hours, setting an unprecedented industry standard for continuous global trading access.
Justin Peterson, Chief Technology Officer at Tradeweb, stated, “The successful completion of this transaction marks a significant step toward 24/7 trading in these markets. The collaboration between Tradeweb's deep U.S. Treasury liquidity and the Canton Network's decentralized framework enabled this trade to occur outside of traditional settlement windows.”
The collaborative effort among the working group participants underlines their commitment to digital transformation in financial markets. Kash Razzaghi, Chief Business Officer at Circle, noted, “This transaction signifies a significant advancement in capital markets infrastructure. The successful use of tokenized U.S. Treasuries and on-chain settlement through USDC showcases collaborative innovation spurring from traditional to digital finance.”
As the financial landscape evolves, Chris Zuehlke, Partner at DRW and Global Co-Head of Cumberland, mentioned, “We are moving beyond theoretical discussions about blockchain in capital markets; we have achieved real-time, on-chain financing of tokenized U.S. Treasuries against USDC.”
In summary, this milestone asserts the capacity of the Canton Network to secure real-time collateral mobility and financing on-chain, laying the groundwork for a more efficient and user-friendly global financial system. The transformational potential of distributed ledger technology continues to attract attention within the financial realm, setting the stage for future advancements that resonate with institutional clients, as they explore new blockchain applications within traditional finance.
The key innovation here is the execution of a live transaction entirely on-chain, a feat that allows for true 24/7 liquidity. By utilizing USDC as the cash leg and UST as collateral, this approach eliminates the time constraints imposed by traditional markets, which previously restricted trading to specific hours. This real-time financing capability is critical for creating an interoperable capital markets infrastructure that is responsive to the needs of modern investors.
Members of this pioneering working group include financial leaders like Bank of America, Circle, Citadel Securities, Cumberland DRW, Digital Asset, The Depository Trust Clearing Corporation (DTCC), Hidden Road, Societe Generale, Tradeweb, and Virtu Financial. Their collaborative efforts illustrate a robust commitment to driving innovation and modernizing the financial landscape.
The impact of this transaction is profound. It signifies a foundational step toward the establishment of capital markets that allow for high-quality liquid assets such as UST to be utilized continuously, without the limitations imposed by outdated practices. Through real-time financing solutions and the seamless mobility of collateral, the transaction enhances market efficiency, accessibility, and utility. This endeavor merges the traditional finance sector with decentralized finance (DeFi), harnessing institutional trust and scale alongside the agility and programmability that blockchain technology offers.
Key highlights from this transaction include the utilization of real-world assets (RWAs) where prime brokers hold client UST within custodied accounts at a subsidiary of DTCC. These prime brokers enabled their clients to create on-chain UST on the Canton Network, thus unlocking its potential as collateral that is freely transferable and easily accessible.
Furthermore, native on-chain USDC liquidity was specifically minted and redeemed on the Canton Network during this transaction to demonstrate its capabilities while ensuring near-instant liquidity. The trade was executed on a Saturday, demonstrating the feasibility of accessing financing outside the traditional global settlement windows—a feature not previously available in this context.
This transaction is more than just an individual achievement; it represents a foundational activation for the broader Canton Network Working Group, which encompasses both traditional financial institutions and participants in the digital asset market.
Using Tradeweb’s advanced execution capabilities, market participants successfully completed this landmark transaction, illustrating the importance of deep liquidity, operational efficiency, and seamless integration, all essential for on-chain U.S. Treasury repo trading in real time. Institutional investors can now access automated financing outside of market hours, setting an unprecedented industry standard for continuous global trading access.
Justin Peterson, Chief Technology Officer at Tradeweb, stated, “The successful completion of this transaction marks a significant step toward 24/7 trading in these markets. The collaboration between Tradeweb's deep U.S. Treasury liquidity and the Canton Network's decentralized framework enabled this trade to occur outside of traditional settlement windows.”
The collaborative effort among the working group participants underlines their commitment to digital transformation in financial markets. Kash Razzaghi, Chief Business Officer at Circle, noted, “This transaction signifies a significant advancement in capital markets infrastructure. The successful use of tokenized U.S. Treasuries and on-chain settlement through USDC showcases collaborative innovation spurring from traditional to digital finance.”
As the financial landscape evolves, Chris Zuehlke, Partner at DRW and Global Co-Head of Cumberland, mentioned, “We are moving beyond theoretical discussions about blockchain in capital markets; we have achieved real-time, on-chain financing of tokenized U.S. Treasuries against USDC.”
In summary, this milestone asserts the capacity of the Canton Network to secure real-time collateral mobility and financing on-chain, laying the groundwork for a more efficient and user-friendly global financial system. The transformational potential of distributed ledger technology continues to attract attention within the financial realm, setting the stage for future advancements that resonate with institutional clients, as they explore new blockchain applications within traditional finance.
Topics Financial Services & Investing）
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