Virtu Financial and Tradeweb completed on August 27 the first fully onchain repurchase agreement using a digital sovereign bond issued by the Republic of the Marshall Islands. The transaction settled in under ten minutes on the Canton Network, a permissioned blockchain developed by Digital Asset, whereas traditional repo transactions typically settle on a T+1 basis. The USDM1 bond, backed 1:1 by short-dated US Treasuries, was natively issued on blockchain, enabling a complete cycle without prime broker intermediation. This pilot, conducted with M1X Global, demonstrates the ability of permissioned blockchain infrastructure to operate within existing regulatory frameworks for institutional markets, with the capability to execute transactions around the clock, seven days a week.
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