US Treasuries Settle On-Chain on the Canton Network
- Atomic Settlement of Treasury Bonds and USDC on the Blockchain
- Participation of large global banks and financial institutions
- Trading conducted on Saturday outside traditional banking hours
Digital Asset and a consortium of major financial institutions have completed a first-of-its-kind, fully on-chain U.S. Treasury bond repurchase transaction utilizing the Canton Network. The transaction, executed on Saturday via Tradeweb's platform, integrated natively minted USDC and tokenized Treasury bonds as collateral, enabling atomic settlement of both parties within a permissioned public institutional network.
Capital Markets leaders just made 24/7 on-chain institutional financing a reality on Canton.
Saturday, July 26, marked a first in enabling real-time, fully on-chain financing of US Treasuries (UST) against USDC, swapped atomically, with the privacy that institutions demand.… pic.twitter.com/b8ZUUMJZS0
— Canton Network (@CantonNetwork) August 12, 2025
According to the announcement, the Treasury securities used in the transaction were held in custody at the Depository Trust Company (DTC), a subsidiary of the Depository Trust & Clearing Corporation (DTCC), and were mirrored on the Canton Network for use as transferable collateral. The use of USDC enabled instant settlement, eliminating reliance on market windows and traditional systems like Fedwire, enabling funding and collateral mobilization 24 hours a day, including weekends.
Participants included Bank of America, Citadel Securities, Societe Generale, Virtu Financial, DTCC, Circle, Cumberland DRW, and Tradeweb. The deal is part of the Global Collateral Network initiative, which aims to integrate high-quality liquid assets—such as Treasury securities—into a unified market infrastructure with programmable settlement and institutional compliance.
Although tokenized Treasury bonds already issued On networks like Ethereum, Polygon, Arbitrum, XRP Ledger, Avalanche, and Stellar, most current solutions settle part of the transaction off-chain or lack the direct involvement of major banks and central depositories. In this case, both the money and the collateral have been tokenized and settled on the same ledger, maintaining integration with established trading platforms and preserving the confidentiality of both parties.
The Canton Network presents itself as an interoperable public blockchain, albeit with access restricted to regulated entities, designed to connect different applications and asset classes into a single settlement environment. The repo transaction is part of the network's long-term plan to unite traditional financial infrastructure and on-chain settlement systems, creating a foundation for continuous market operations.
According to the consortium, new transactions using the same model are planned for later this year, as part of broader interoperability and privacy tests on the network.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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