The Canton Network’s Industry Working Group, led by Digital Asset and backed by some of the world’s largest financial institutions, today announced the successful completion of a second phase of fully onchain U.S. Treasury financing transactions – a major step forward from the single-transaction pilot conducted in July.

The milestone marks the first time tokenized U.S. Treasuries have been reused as collateral in real time across multiple counterparties on a public permissioned blockchain, solving one of traditional finance’s longest-standing operational frictions: slow and costly rehypothecation.

Five synchronized transactions were executed (up from one in the inaugural test), demonstrating growing scale and repeatability. The tests introduced multiple new stablecoins as funding sources and welcomed additional participants, signaling rapidly broadening institutional adoption.

Key advancements demonstrated include:

• Broader stablecoin liquidity – Transactions incorporated SBC (issued by Brale) and USDM1 alongside USDC, diversifying onchain funding options.
• Expanded participation – New members Brale and M1X Global joined Bank of America, Circle, Citadel Securities, Cumberland DRW, Societe Generale, Tradeweb, Virtu Financial, and Digital Asset.
• Real-time collateral reuse – Tokenized Treasuries were pledged, released, and immediately repledged across counterparties without settlement delays or manual intervention.

“Direct conversion from Treasuries to stablecoins inside a market trade delivers efficiency that’s been promised for years but never realized,” said Ben Milne, CEO of Brale. “Canton finally makes institutional-grade blockchain workflows real, composable, programmable, and ready for global markets.”

Chris Zuehlke, Global Head of Cumberland and Partner at DRW, emphasized the accelerating momentum: “By enabling real-time collateral rehypothecation and broadening stablecoin liquidity, the Network continues to pave the way for financial institutions to achieve enhanced collateral mobility and operational efficiency.”

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https://www.canton.network/canton-network-press-releases/the-canton-networks-industry-working-group-demonstrates-next-phase-of-onchain-u.s.-treasury-financing