@AscendFi Markets and @M1XGlobal have completed the first institutional repurchase agreement (repo) on the @StellarOrg blockchain, using a tokenized sovereign bond as collateral. The trade ra
@AscendFi Markets and @M1XGlobal have completed the first institutional repurchase agreement (repo) on the @StellarOrg blockchain, using a tokenized sovereign bond as collateral. The trade ran with no manual intervention across a three-day window that included overnight and weekend hours.
The repo ran through Ascend's institutional credit facility using Stellar smart contracts, with 72 consecutive programmatic hourly rolls between October 16 and 19. Because the rolls were automated, financing continued outside normal market hours, a feature of 24/7 on-chain markets that traditional repo desks do not offer.
The collateral was $USDM1. It is a US dollar-denominated sovereign bond issued natively onchain and secured 1:1 by short-duration US Treasuries.M1X Global worked with the Republic of the Marshall Islands to help issue USDM1.It was initially issued on Stellar and is also available on Canton and Solana.
The transaction was priced at SOFR plus 10 basis points, equivalent to an annualized financing rate of 3.98%, with interest accruing daily, a 2% collateral haircut and a maximum loan-to-value ratio of 98%.The repo concluded with repayment and return of the USDM1 collateral.
The structure differs from many tokenized Treasury products. M1X Global's president and COO Jordan Goldman told The Block that USDM1 is structured as sovereign debt backed one-to-one by short-duration Treasuries under New York law, unlike privately issued digital dollar instruments.He said this allows use across repo, margin and secured financing markets while supporting 24/7 settlement.
The deal extends Stellar beyond its established payments focus. The companies describe it as a milestone in bringing institutional secured financing onto the network, one of the longest-running public blockchains.Stellar has said the network was purpose-built for fast, low-cost settlement and real-world asset tokenization, with institutional relationships including Franklin Templeton, WisdomTree and Paxos.
Ascend has also received backing from the network's main steward. The Stellar Development Foundation made a strategic investment in the firm, which brings compliant tokenization via the ERC-3643 standard, permissioned credit vaults and a Distressed Disposal Facility to Stellar.
The test was a single transaction, and the companies have not disclosed its size in the release. Whether tokenized sovereign collateral gains wider acceptance among lenders will depend on further repeat trades and broader institutional uptake.
Sources:
