A group of digital assets and leading financial companies have financing in real time and fully chained loans to USDC on the Canton Network.
The repo transaction, which took place on TradeWeb, settled atomicly on Saturday and avoided weekday restrictions on traditional payment systems, according to a press release shared with Coindesk on Tuesday.
Prime Brokers converted the US Treasury Department held at the Depository Trust & Clearing Corporation (DTCC) into Canton’s tokenized assets and used them as collateral for USDC-backed funding. Canton Network is a privacy-centric blockchain developed by digital assets.
Institutions involved in the transaction include Bank of America (BAC), Circle (CRCL), Citadel, Cumberland DRW, DTCC, Hidden Road, Societe Generale, Virtu Financial and Tradeweb. Most of these companies invested in digital assets in a $135 million fundraiser in June.
Tokenization of government liabilities, a key collateral asset in global markets, is part of a broader drive to bring financial products or real-world assets to the blockchain. Global banks and asset managers explore tokenization to reduce payment times, increase transparency and keep the market open 24 hours a day.
Participants at Canton Transaction said they marked a step towards a unified market structure that combines traditional financial scale with the programmatic nature of decentralized blockchain rails. They are planning more deals later this year.
“(Transactions) show how market participants can use assets on the chain to unlock real-time collateral mobility and 24-hour funding.
Read more: Decentralized Finance and Tokenization Growth Still Disappointing: JPMorgan
