Digital Asset, in collaboration with a consortium of financial institutions, has successfully completed the first transaction on the Canton Network which allows for real-time, on chain financing of US Treasuries (UST) against USDC.
Justin Peterson
Among those included in the industry working group which supported the completion of the transaction are Bank of America, Circle, Citadel Securities, Digital Asset, The Depository Trust and Clearing Corporation (DTCC), Cumberland DRW, Hidden Road, Societe Generale, Tradeweb and Virtu Financial.
The transaction was executed entirely on-chain via Tradeweb, and is expected to address challenges associated with on-chain repo activities such as off-ledger cash and market hour restrictions, by providing near instant, atomic settlement on a public blockchain outside of traditional market hours.
“Tradeweb’s deep US Treasury liquidity and electronic execution capabilities, combined with the Canton Network’s interoperable and decentralised framework, enabled this trade to happen outside of traditional settlement windows,” said Justin Peterson, chief technology officer at Tradeweb.
“It’s an industry first and reflects the power of collaboration in building a more connected, resilient, and always-on global capital market ecosystem.”
The firms have said that the offering will pave the way for 24/7 global trading access to high quality liquidity assets as the industry standard, and further transactions are expected to take place later this year.
The completion of the transaction also marks a further step forward for the Canton Network’s global collateral network, which aims to provide a unified market structure which allows real-world assets to move across a global digital financial system.
“This landmark transaction represents a giant leap forward in how market participants can maximise their collateral utility. Digital Assets has demonstrated that real-time, 24/7 financing is within reach on the Canton Network,” said Dan Eckstein, head of rates sales at Virtu Financial.