Institutional Stablecoin Repo Market Takes Shape on Public Chains

Zug, Switzerland - December 23, 2025 - A landmark development in the digital asset space has occurred with Solstice Labs, Cor Prime, and Membrane Labs executing the first institutional stablecoin-for-stablecoin repurchase agreement (repo) on a public blockchain. The transaction was settled using traditional market documentation, including a Global Master Repurchase Agreement (GMRA) and Digital Asset Annex. This event marks the creation of a standardized, institutional-grade stablecoin funding market on public blockchain infrastructure.

The repo involved Solstice Labs posting its native stablecoin, USX, as the asset leg, while Cor Prime provided USDC as the cash leg. The transaction was executed bilaterally and settled directly between institutional wallets on Solana and Ethereum, with Membrane's post-trade credit infrastructure managing the process. This structure enables cross-chain asset movement with full ownership transfer and repo-style unwind.

The transaction is significant because it mirrors the legal, operational, and economic mechanics of traditional repo markets but on a public blockchain. Unlike automated lending pools or overcollateralized loans, this structure offers institutional-grade liquidity tools directly on-chain.

The repo also allows Solstice to enhance peg resilience and balance sheet management for USX while enabling investors to earn structured returns using familiar market mechanics.

A New Funding Primitive for Stablecoins

Stablecoins have long varied in liquidity, regulatory treatment, and institutional adoption. Until now, issuers and traders lacked traditional funding tools like repos to manage liquidity, defend pegs, or access short-term financing without selling inventory. Automated lending pools and overcollateralized loans have been the only available models, neither of which resembles institutional repo structures.

This new stablecoin repo structure provides Solstice with flexibility in balance sheet management and peg resilience. It also opens avenues for investors to earn structured returns using digital assets, leveraging mechanisms they already understand from traditional markets. The ability to finance USX against USDC through a standardized repo gives Solstice surplus capital an outlet to generate low-risk yield without compromising stability.

Institutional Infrastructure for Onchain Credit Markets

Membrane's role in the transaction was pivotal. The firm provided the post-trade credit infrastructure necessary to execute, margin, settle, and service the repo across chains. Its platform allows institutions to use traditional legal documentation while benefiting from the speed and finality of public blockchain settlement. This integration of off-chain liquidity with on-chain markets strengthens the ecosystem by enabling seamless capital movement.

Cor Prime acted as the OTC counterparty, supplying the institutional liquidity needed for the transaction. By enabling this cross-chain repo settlement between stablecoins on a public network, Cor Prime demonstrated how integrating off-chain liquidity with on-chain operations can enhance market efficiency. The result is a more fluid market where capital can be allocated to its most productive use.

Foundation for a Stablecoin Funding Curve

This transaction establishes the basis for a true stablecoin funding market across public blockchains. As this structure evolves, it could allow stablecoin issuers to manage liquidity more effectively, market makers to access institutional-grade stablecoin financing, and investors to earn repo-style returns backed by digital assets. The development paves the way for a standardized stablecoin funding curve, bringing one of the most critical liquidity mechanisms in global markets into the digital asset ecosystem.

For now, the success of this transaction represents a first step. As more institutions adopt similar structures, the market for digital asset funding will mature. This could lead to broader adoption of stablecoins in institutional settings and further integration of blockchain-based financial tools into traditional markets.

What This Means for Investors

For investors, this development introduces new opportunities to access structured returns in the digital asset space without venturing far from traditional mechanisms. The repo model allows for disciplined liquidity management and risk control, aligning with institutional-grade standards. As more stablecoins enter this funding market, investors can expect a range of options to generate yield while maintaining exposure to digital assets.

Institutional investors should monitor how this market evolves. The ability to transact using familiar legal frameworks while benefiting from blockchain speed and finality is a compelling advantage. As the infrastructure supporting these transactions grows, more players-both traditional and digital-will likely enter the market, increasing competition and potentially lowering risk premiums.