Canton Network has completed a third round of tokenized repurchase agreement (repo) transactions, this time using the London Stock Exchange Group’s (LSEG) tokenized deposit solution rather than stablecoins. The trials involved cross border intraday repos across multiple assets and currencies, with participants including Euroclear, Euronext, LSEG, TreasurySpring, Cumberland DRW, Digital Asset, Societe Generale, Tradeweb, and Virtu Financial.
LSEG’s Digital Settlement House (DiSH) tokenizes commercial bank deposits, enabling instantaneous transfers between network members without requiring direct banking relationships. Typically single bank tokenized deposits require the user to be a client of the bank to receive funds. In these transactions, the tokenized deposits functioned as the cash leg of the repo trades.
The trials address a core challenge in traditional collateral markets: assets are often siloed across different custodians and jurisdictions, restricting collateral utility. The transfer of assets typically requires one to two days to settle, limiting the ability to mobilize collateral quickly. Tokenization aims to enable collateral mobility: 24/7 movement of collateral across borders and counterparties in real time.
The transactions involved European Government Bonds and US Treasuries as collateral, with settlement in both euros and US dollars. This represents an expansion from the previous October trials, which used stablecoins including USDC, SBC, and USDM1 for settlement.
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