Blockchain Enables First On-Chain U.S. Treasury Repo Settlement With Institutional Players

Digital Asset has partnered with multiple Wall Street institutions to complete the first real-time, on-chain U.S. Treasury repo transaction on the Canton Network. The transaction, facilitated through Tradeweb, involved participants including Bank of America, Citadel, DTCC, Crédit Agricole CIB, Circle, and Virtu. The repo utilized tokenized U.S. Treasury bonds as collateral for USDC financing, with the underlying assets held in custody by DTCC. This execution marked the first on-chain settlement of a U.S. Treasury repo, enabling weekend instant settlement and bypassing traditional weekday-only settlement cycles [1].

The Canton Network, a privacy-focused, interoperable blockchain network, supports institutional-grade digital assets and is designed to meet the requirements of regulated financial environments. The use of USDC, a stablecoin pegged to the U.S. dollar, enabled seamless and immediate value transfer, demonstrating the potential for blockchain to enhance speed, efficiency, and transparency in post-trade processes.

This milestone demonstrates the ability of blockchain to streamline traditional financial workflows, particularly in repo markets where speed and risk mitigation are critical. The on-chain execution eliminated the need for manual reconciliation and intermediaries, reducing settlement risk and operational overhead. The real-time nature of the transaction also highlights how digital infrastructure can overcome limitations of traditional systems, such as weekend settlement delays [1].

The collaboration signals growing institutional confidence in blockchain-based solutions for asset management and trading. It reflects the broader trend of financial institutions exploring digital transformation, particularly in asset tokenization and cross-border settlements. The success of this repo transaction suggests that blockchain can handle complex financial instruments at scale, provided there is alignment on governance, cybersecurity, and regulatory compliance.

The Canton Network’s role in this achievement underscores the importance of interoperability between legacy financial systems and emerging digital platforms. As financial markets continue to evolve, the ability to tokenize assets and execute transactions on-chain may redefine traditional workflows and open new opportunities for liquidity management and capital deployment.

Digital Asset’s progress in this area is supported by a strong institutional backing. Earlier this year, the company raised $135 million in a Series E funding round, with participants including DRW, Tradeweb, DTCC, Citadel Securities, and Goldman Sachs. This funding, along with the recent repo execution, positions Digital Asset as a leading force in the development of institutional-grade digital asset infrastructure.

This development aligns with the broader shift toward digital finance, as more institutions explore the benefits of blockchain in asset tokenization, payments, and trade finance. The success of this on-chain repo transaction reinforces the potential of blockchain as a practical tool for financial infrastructure and suggests that further innovation in this space is likely to follow.

Source: [1] Digital Asset has partnered with multiple Wall Street institutions to complete the first real-time, on-chain U.S. Treasury repo transaction on the Canton Network. (https://www.theblockbeats.info/en/flash/307042)