Virtu Financial, M1X Global, and Tradeweb complete fully onchain repo transaction
27 August 2026 US
Image: Sashkin/stock.adobe.com
Virtu Financial, M1X Global, and Tradeweb have completed a fully onchain repo transaction, executed on the Canton Network.
According to the firms, this is the first instance of a fully onchain repo transaction in which the securities leg was a sovereign digital bond, functioning as collateral in a repo executed through a major institutional electronic trading venue without intermediation from a prime broker.
Each element of the transaction 鈥� securities delivery, cash leg, and return 鈥� settled atomically onchain.
Virtu鈥檚 repo was executed bilaterally on the Tradeweb platform between regulated institutional counterparties, with a complete cycle reported to have taken under 10 minutes.
The securities leg is the US dollar-pegged sovereign financial instrument USDM1, backed one-to-one by short-dated US Treasuries held in bankruptcy-remote custody, and issued by the Republic of the Marshall Islands.
Regarding the initiative, Jordan Goldman, president and chief operating officer at M1X Global, says: 鈥淒erivatives and secured financing markets have been waiting for collateral that works across institutional and digital rails simultaneously.
鈥淭his transaction demonstrates for the first time what onchain sovereign collateral looks like in production.鈥�
Dan Eckstein, head of rates sales at Virtu Financial, remarks: 鈥淐apital efficiency is not an abstract concept for us - it shows up directly in our ability to deploy working capital and serve clients.
鈥淯SDM1 addresses collateral constraints that have limited onchain capital markets and prevented them from reaching institutional scale.鈥�
Liz Kirby, Tradeweb鈥檚 head of market structure, adds: 鈥淭he completion of this transaction demonstrates how digitally native sovereign collateral and atomic settlement can enhance collateral capital efficiency and modernise repo workflows, all while maintaining the institutional standards market participants have come to expect.鈥�
According to the firms, this is the first instance of a fully onchain repo transaction in which the securities leg was a sovereign digital bond, functioning as collateral in a repo executed through a major institutional electronic trading venue without intermediation from a prime broker.
Each element of the transaction 鈥� securities delivery, cash leg, and return 鈥� settled atomically onchain.
Virtu鈥檚 repo was executed bilaterally on the Tradeweb platform between regulated institutional counterparties, with a complete cycle reported to have taken under 10 minutes.
The securities leg is the US dollar-pegged sovereign financial instrument USDM1, backed one-to-one by short-dated US Treasuries held in bankruptcy-remote custody, and issued by the Republic of the Marshall Islands.
Regarding the initiative, Jordan Goldman, president and chief operating officer at M1X Global, says: 鈥淒erivatives and secured financing markets have been waiting for collateral that works across institutional and digital rails simultaneously.
鈥淭his transaction demonstrates for the first time what onchain sovereign collateral looks like in production.鈥�
Dan Eckstein, head of rates sales at Virtu Financial, remarks: 鈥淐apital efficiency is not an abstract concept for us - it shows up directly in our ability to deploy working capital and serve clients.
鈥淯SDM1 addresses collateral constraints that have limited onchain capital markets and prevented them from reaching institutional scale.鈥�
Liz Kirby, Tradeweb鈥檚 head of market structure, adds: 鈥淭he completion of this transaction demonstrates how digitally native sovereign collateral and atomic settlement can enhance collateral capital efficiency and modernise repo workflows, all while maintaining the institutional standards market participants have come to expect.鈥�
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