Major Financial Institutions Complete Landmark U.S. Treasury Financing Using Tokenization
The first-ever round-the-clock settlement of U.S. Treasuries utilizing tokenized assets and USDC has been achieved, marking a significant milestone in financial technology.
Major Financial Institutions Complete Landmark U.S. Treasury Financing Using Tokenization
The first-ever round-the-clock settlement of U.S. Treasuries utilizing tokenized assets and USDC has been achieved, marking a significant milestone in financial technology.
Key Highlights:
- Digital Asset collaborated with leading financial players to complete the first real-time, on-chain financing of U.S. Treasuries using USDC on the Canton Network.
- This initiative reflects a growing trend towards the tokenization of up-to-date financial tools, aimed at improving efficiency in global markets.
- Conducted on a Saturday, the transaction successfully navigated the traditional limitations of settlement processes and included major firms like Bank of America, Citadel Securities, DTCC, Societe Generale, and Tradeweb.
Digital Asset and a consortium of key financial companies executed a groundbreaking real-time financing transaction of U.S. Treasuries backed by USDC on the Canton Network. The repo transaction, handled through Tradeweb, executed flawlessly on a Saturday, circumventing the weekday-only constraints typically associated with settlement systems.
Prime brokers transformed U.S. Treasuries managed by the Depository Trust & Clearing Corporation (DTCC) into tokenized versions on the Canton Network, leveraging them as collateral for USDC-based financing. Digital Asset devised the Canton Network with a focus on privacy.
Participants in this venture, which included Bank of America (BAC), Circle (CRCL), and other notable institutions, deem this as a significant progression toward a cohesive market framework blending traditional finance with the programmability of decentralized blockchain systems. They plan on executing additional transactions this year.
Kelly Mathieson, Chief Business Development Officer at Digital Asset, emphasized: “This transaction illustrates how market players can facilitate real-time collateral movement and all-day financing through on-chain assets, setting the stage for a more effective global financial system.”
For further reading, explore more on Decentralized Finance and Tokenization Growth.
