Canton advances cross-border repo to free up $300 trillion assets via tokenization

Finance Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Canton advances cross-border repo to free up $300 trillion assets via tokenization A group of global financial firms tokenized a repo transaction with U.K. government bonds for the first time. By Krisztian Sandor | Edited by Sheldon Reback Feb 24, 2026, 1:00 p.m. Make us preferred on Google (PublicDomainPictures/Pixabay modified by CoinDesk) What to know : A group of major financial firms including DTCC executed the first cross-border intraday repo using tokenized U.K. government bonds on the Canton Network. The trade included the first cross-currency transaction in which tokenized gilts were exchanged for tokenized deposits in a non-sterling currency, with smart contracts embedding interest and risk terms. Proponents say using a blockchain for these repos could unlock far more of the roughly $300 trillion in high-quality liquid assets as collateral by enabling real-time, around-the-clock settlement across borders. A group of global financial firms completed the first cross-border, intraday repurchase agreement using tokenized U.K. government bonds on the Canton Network, a blockchain designed for institutions. The transaction marks the first time digital versions of gilts, a $2-trillion market , have been used in an intraday repo across borders, according to a release shared with CoinDesk. It also includes the first cross-currency trade in which tokenized gilts were exchanged against tokenized deposits denominated in a currency other than the British pound. STORY CONTINUES BELOW Don't miss another story. Subscribe to the Crypto Daybook Americas Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms & conditions and privacy policy . In a repo, one party sells a security and agrees to buy it back later, often the same day. Banks and trading firms use these deals to raise short-term cash. By placing both the cash and the bond on a shared blockchain, the group aims to move collateral in real time rather than waiting for traditional market hours. Participants in the latest round include LSEG, Euroclear, DTCC, Tradeweb, Citadel Securities and Societe Generale, along with digital asset firms such as Archax and Cumberland DRW. TreasurySpring embedded interest payments and risk terms directly into smart contracts tied to the trades. The maneuver fits into Canton's bigger ambition to make $300 trillion of global assets such as government bonds more useful as collateral by tokenizing them on a blockchain, Kelly Matheison, chief business development officer of Digital Assets, said in an interview with CoinDesk. Digital Asset is the key development firm behind the Canton Network, and raised funds last year from financial heavyweights such as Goldman Sachs, DRW, Citadel Securities, BNY and Nasdaq. "There are about $300 trillion of high-quality liquid assets around the globe," Matheison said. "Yet only about 10%-11% of that — roughly $28 trillion — is used as collateral at any given time." The reason for that is timing. In traditional markets, firms must plan days ahead to move securities across borders, navigating settlement cycles, batch processing and market cut-off times. "At a practical level, it restricts the amount of high-quality liquid assets that you can get in use at any point in time," she said. Using blockchain ledgers like Canton for these transactions allows counterparties to transfer ownership in real-time and around-the-clock, rather than waiting for batch settlement windows. That way, financial firms can use their balance sheets more efficiently and trade more, Mathieson said. Digital Asset Tokenization Tokenized Assets More For You Step Finance shuts operations after $27 million January hack By Jamie Crawley | Edited by Sheldon Reback 2 hours ago Step is working on a buyback for holders of native token STEP based on a snpashot of holdings and value prior to the incident. What to know : DeFi portfolio tracker Step Finance will wind down operations effective immediately following a $27 million hack in January. Native token STEP lost nearly 96% of its value following the incident, and is a further 36% lower in the last 24 hours after the project announced its closure. Affiliate projects SolanaFloor, a Solana-focused media outlet, and tokenization platform Remora Markets, will also close. Read full story Latest Crypto News Over 400,000 BTC bought between $60k and $70k during bitcoin’s latest downturn 39 minutes ago Bitcoin teeters near $63,000 as pippin's rally shows froth remains 46 minutes ago The ghost of the iPhone: Why Michael Saylor thinks bitcoin is mirroring Apple’s legendary ‘valley of despair’ 56 minutes ago Crypto markets bleed as bitcoin hovers above liquidation zone 1 hour ago Step Finance shuts operations after $27 million January hack 2 hours ago Putting the treasury to work: The Ethereum Foundation just staked 70,000 ETH to fund its future 2 hours ago Top Stories Jane Street faces claims of insider trading that sped up Terraform's 2022 collapse 7 hours ago Hong Kong's RedotPay said to plan blockbuster $1 billion IPO in New York: Bloomberg 3 hours ago Canaan buys Cipher’s 49% of West Texas mining venture for $39.75 million in stock 2 hours ago Bitcoin's price discovery is moving to Chicago 5 hours ago Anthony Pompliano led Procap Financial dips toe into buybacks 21 hours ago