Tokenized collateral is gaining momentum across both industry trials and regulatory pilots. Canton Network has completed a second round of expanded tokenized Treasury repo trials. The timing coincides with yesterday’s launch of the CFTC’s tokenized collateral pilots, though those pilots provided limited regulatory guidance upfront. Instead, clarity should emerge from the pilot results themselves.
Canton Network, a public blockchain focused on institutional finance, conducted its first tokenized repo trial in July. The test involved repurchase agreements where Treasuries were exchanged for USDC stablecoins, with transactions reversed several hours later. The trade was executed on Tradeweb, a major repo venue, with the DTC handling the tokenization.
The latest iteration involved Bank of America, Brale, Circle, Citadel Securities, Cumberland DRW, Digital Asset, M1X Global, Societe Generale, Tradeweb, and Virtu Financial. Tradeweb again served as the trading venue. We requested clarification about whether the DTC was again involved in the tokenization.
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