US Treasuries Trade on Canton Blockchain Settlement Test

US Treasuries have been traded on the Canton blockchain network, marking an industry first for atomic settlement of both legs entirely on-chain within a public-permissioned institutional network. The trade involved USDC as the cash leg and tokenized Treasuries as collateral, and was executed by a consortium of major financial institutions including Bank of America, Citadel Securities, and Societe Generale. The transaction was designed to preserve participant confidentiality while demonstrating technical feasibility.

US Treasuries have been traded on the Canton blockchain network, marking an industry first for atomic settlement of both legs entirely on-chain within a public-permissioned institutional network. The trade involved USDC as the cash leg and tokenized Treasuries as collateral, and was executed by a consortium of major financial institutions including Bank of America, Citadel Securities, and Societe Generale. The transaction was designed to preserve participant confidentiality while demonstrating technical feasibility [1].

The trade, executed on Tradeweb during the weekend, is being positioned as an industry first for enabling continuous financing and collateral mobility outside legacy market windows. The Canton Network, a public-permissioned blockchain developed by Digital Asset, allows for instant exchange and removes reliance on traditional banking hours or Fedwire settlement [2]. The transaction was facilitated by the Depository Trust Company (DTC), a subsidiary of the Depository Trust & Clearing Corporation (DTCC), which custodied the Treasuries and mirrored them onto the Canton Network for use as freely transferable collateral [3].

Participants in the transaction included major financial institutions such as Bank of America, Citadel Securities, Societe Generale, Virtu Financial, DTCC, Circle, Cumberland DRW, and Tradeweb. The firms described the trade as part of the Global Collateral Network initiative, which seeks to integrate high-quality liquid assets such as Treasuries into a unified, always-on market infrastructure that combines institutional compliance requirements with programmable settlement [1].

Tokenization of government debt, a crucial collateral asset in global markets, is part of a broader push to bring financial instruments onto blockchains. This move aims to cut settlement times, increase transparency, and keep markets open around the clock. The Canton Network is designed to link separate applications and asset types into a single environment for cross-asset settlement, aiming to connect traditional financial infrastructure with on-chain settlement rails for round-the-clock market operations [2].

The transaction demonstrates the potential of blockchain technology to revolutionize the trading of traditional assets. It marks a significant shift in the traditional financial landscape, enabling instantaneous exchange and settlement, and potentially bridging the gap between traditional and digital finance [3]. The success of this initiative could pave the way for more extensive use of blockchain in the financial sector, transforming how assets are traded and managed.

References:
[1] https://cryptoslate.com/us-treasuries-trade-on-saturday-as-banks-join-canton-blockchain-settlement-test/
[2] https://www.coindesk.com/business/2025/08/11/wall-street-firms-complete-first-24-7-u-s-treasury-financing-via-tokenization-on-canton-network
[3] https://www.ainvest.com/news/treasuries-blockchain-24-7-trading-crypto-2508/