A consortium of financial institutions, including Bank of America, Circle, and the DTCC, has achieved a significant milestone by utilizing the Canton Network blockchain platform for the inaugural full on-chain financing of U.S. Treasuries (UST) using USDC stablecoin.
This groundbreaking transaction, executed via Tradeweb, was entirely conducted on-chain, with USDC acting as the cash leg and on-chain UST serving as collateral. This innovation provides continuous liquidity and overcomes the limitations of traditional off-ledger cash operations and market-hour restrictions commonly associated with legacy systems.
Digital Asset, the firm behind the Canton Network, describes this accomplishment as a “foundational step” toward establishing capital markets where high-quality liquid assets, such as UST, remain accessible around the clock, independent of conventional market hours or settlement hurdles.
Participants in this endeavor, including Citadel Securities and Société Générale, utilized Tradeweb’s execution services to facilitate automated financing outside standard market periods. The specifics of role allocations within the transaction remain confidential.
Kelly Mathieson, Chief Business Development Officer at Digital Asset, remarked: “This landmark transaction exemplifies a crucial advancement in developing the Global Collateral Network on the Canton Network. It showcases our capability to maintain institutional confidentiality while leveraging a public blockchain.”
She added, “This initiative enables market participants to unlock real-time mobility of collateral and continuous financing through on-chain assets, paving the way for a more efficient and accessible global financial ecosystem.”