USDM1 recently served as the sovereign securities collateral leg in the first fully onchain repo transaction executed with Virtu Financial via the Tradeweb platform
This was driven by an 19 per cent YoY rise in GC Pooling average term-adjusted volume to €260.1 billion, and an 30 per cent YoY increase in special repo to €210.4 billion
The addition of G7 helps market participants to execute international cross-border repo transactions, intraday repo activity, and collateral movements through atomic settlement
Executed on the Canton Network, the firms say that this is the first instance of a fully onchain repo transaction in which the securities leg was a sovereign digital bond, with each element settled atomically onchain
In collaboration with Digital Asset, Progmat, and four MUFG companies, the proof-of-concept aims to apply blockchain technology to secondary‑market repo activity by enabling automated lifecycle processes and real‑time settlement
According to the firm, this milestone is an important step towards improving collateral mobility in the Canadian repo market with full automation of repo collateral and unlimited real-time substitution