Nonco accepts USDM1 as eligible collateral
09 September 2026 US
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Nonco has confirmed that it will accept and post USDM1 across its derivatives, financing, and institutional trading activities.
USDM1 recently served as the sovereign securities collateral leg in the first fully onchain repo transaction executed with Virtu Financial via the Tradeweb platform.
The underlying USDM1 instrument is structured as a USD-denominated sovereign bond secured on a 1:1 basis by short-dated US Treasury securities, which are pledged to a US trust company within a bankruptcy-remote framework.
Unlike legacy corporate stablecoin obligations or tokenised money market fund (MMF) shares, USDM1 operates as a natively issued sovereign bond.
This design creates distinct asset-class treatment, risk-weightings, and legal protections across continuous 24/7 institutional funding markets.
Governed by New York law, the instrument features an explicit customary waiver of sovereign immunity.
This dual-recourse structure provides asset holders with enforceable rights to par redemption against a sovereign issuer alongside a first-priority perfected security interest in the underlying US Treasury collateral under Articles 8 and 9 of the Uniform Commercial Code (UCC).
Operationally, Nonco was an early adopter of tokenised fund interests for margin requirements, having previously utilised Superstate鈥檚 USTB product to collateralise a bilateral BTC/USD options transaction.
Jeffrey Howard, head of North America and partner of Nonco, states: 鈥淣onco was early in demonstrating that tokenised fund interests could become productive collateral rather than simply investment products.
鈥淣atively issued sovereign debt adds another important building block to our toolkit.
鈥淚nstitutional markets have always optimised among different forms of high-quality collateral depending on the transaction. As markets move onchain, the same principle applies.鈥�
Jordan Goldman, president and chief operating officer of M1X Global, adds: 鈥淭okenisation is a technology, not an asset class. A payment stablecoin, a fund share, and a sovereign bond can all move onchain, but they remain fundamentally different financial instruments.
鈥淭wo assets with the same dollar value can have very different collateral economics depending on their legal rights, eligibility, netting treatment, and financing characteristics.鈥�
Institutional custody and settlement infrastructure supporting USDM1 includes Anchorage Digital Bank, BitGo Bank & Trust, and tZERO's regulated broker-dealer custodian.
USDM1 is also offered through Tradeweb and accepted by FDIC-insured Bank of Guam.
USDM1 recently served as the sovereign securities collateral leg in the first fully onchain repo transaction executed with Virtu Financial via the Tradeweb platform.
The underlying USDM1 instrument is structured as a USD-denominated sovereign bond secured on a 1:1 basis by short-dated US Treasury securities, which are pledged to a US trust company within a bankruptcy-remote framework.
Unlike legacy corporate stablecoin obligations or tokenised money market fund (MMF) shares, USDM1 operates as a natively issued sovereign bond.
This design creates distinct asset-class treatment, risk-weightings, and legal protections across continuous 24/7 institutional funding markets.
Governed by New York law, the instrument features an explicit customary waiver of sovereign immunity.
This dual-recourse structure provides asset holders with enforceable rights to par redemption against a sovereign issuer alongside a first-priority perfected security interest in the underlying US Treasury collateral under Articles 8 and 9 of the Uniform Commercial Code (UCC).
Operationally, Nonco was an early adopter of tokenised fund interests for margin requirements, having previously utilised Superstate鈥檚 USTB product to collateralise a bilateral BTC/USD options transaction.
Jeffrey Howard, head of North America and partner of Nonco, states: 鈥淣onco was early in demonstrating that tokenised fund interests could become productive collateral rather than simply investment products.
鈥淣atively issued sovereign debt adds another important building block to our toolkit.
鈥淚nstitutional markets have always optimised among different forms of high-quality collateral depending on the transaction. As markets move onchain, the same principle applies.鈥�
Jordan Goldman, president and chief operating officer of M1X Global, adds: 鈥淭okenisation is a technology, not an asset class. A payment stablecoin, a fund share, and a sovereign bond can all move onchain, but they remain fundamentally different financial instruments.
鈥淭wo assets with the same dollar value can have very different collateral economics depending on their legal rights, eligibility, netting treatment, and financing characteristics.鈥�
Institutional custody and settlement infrastructure supporting USDM1 includes Anchorage Digital Bank, BitGo Bank & Trust, and tZERO's regulated broker-dealer custodian.
USDM1 is also offered through Tradeweb and accepted by FDIC-insured Bank of Guam.
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