• Canton advances cross-border repo to free up $300 trillion assets via tokenization A group of global financial firms tokenized a repo transaction with U.K. • government bonds for the first time. • What to know: A group of major financial firms including DTCC executed the first cross-border intraday repo using tokenized U.K. • government bonds on the Canton Network. • The trade included the first cross-currency transaction in which tokenized gilts were exchanged for tokenized deposits in a non-sterling currency, with smart contracts embedding interest and risk terms. • Proponents say using a blockchain for these repos could unlock far more of the roughly $300 trillion in high-quality liquid assets as collateral by enabling real-time, around-the-clock settlement across borders.

Article Summaries:

  • A consortium of major financial firms completed the first cross‑border, intraday repurchase agreement using tokenized U.K. government bonds on the Canton Network, a blockchain platform for institutional use. The deal also marked the first cross‑currency tokenized repo, swapping tokenized gilts for tokenized deposits in a non‑sterling currency, with smart contracts embedding interest and risk terms. Participants included LSEG, Euroclear, DTCC, Tradeweb, Citadel Securities, Société Générale, Archax and Cumberland DRW. Proponents say the technology could unlock roughly $300 trillion of high‑quality liquid assets by enabling real‑time, around‑the‑clock settlement and more efficient collateral use.

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