Financial Institutions Test Multi-Stablecoin Settlement and Instant Rehypothecation on Institutional Blockchain
A group of major financial institutions has completed a new phase of onchain US Treasury financing on the Canton Network, successfully demonstrating instant collateral reuse and broader stablecoin integration. The trial, led by Digital Asset, marks a significant advancement in bringing institutional-grade real-world asset tokenization into active financial markets.
The latest round included five transactions, expanding on an earlier pilot that combined tokenized US Treasurys with USDC for settlement. This time, participants used multiple stablecoins, increasing the depth of onchain liquidity and showcasing flexible financing options.
The trial proved that tokenized US Treasurys can be transferred between counterparties and reused as collateral immediately a sharp contrast to the operational delays and manual processes common in traditional rehypothecation. The ability to recycle high-quality collateral in real time is considered one of the most promising use cases for blockchain in institutional finance.
The test involved industry leaders including Bank of America, Citadel Securities, Cumberland DRW, Virtu Financial, Société Générale, Tradeweb Circle, Brale and M1X Global. All are members of the Canton Network Industry Working Group.
Digital Asset’s leadership described the trial as a milestone on the path toward a new market model, while Tradeweb emphasized that expanded stablecoin liquidity and instant collateral reuse offer a blueprint for the future of institutional markets.
The Canton Network has accelerated its growth across the tokenization landscape. Digital Asset recently secured $50 million in strategic funding following a larger $135 million raise earlier in the year. Major institutions are also joining the network, including Franklin Templeton, which plans to migrate its tokenized money market fund infrastructure to Canton.
According to RWA data, Canton now leads all blockchains in tokenized real-world asset volume, representing more than $370 billion onchain, significantly ahead of Ethereum, Polygon, Solana and other public networks.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.