Tokenization news: Canton advances cross-border repo to free up $300 trillion assets

A consortium of global financial firms, including LSEG, Euroclear, DTCC, and Societe Generale, successfully executed the first cross-border, intraday repurchase agreement (repo) utilizing tokenized U.K. government bonds (gilts) on the Canton Network, a blockchain designed for institutions. This transaction also involved the first cross-currency trade where tokenized gilts were exchanged for tokenized deposits in a currency other than the British pound. Repos allow parties to raise short-term cash by selling a security and agreeing to buy it back later. By placing both cash and collateral on the shared blockchain, the group aims to enable real-time collateral movement, bypassing traditional settlement cycles and market cut-off times. This initiative aligns with Canton Network's goal, driven by Digital Asset, to unlock the utility of approximately $300 trillion in global high-quality liquid assets, of which only 10%-11% are typically used as collateral due to timing constraints in traditional markets.

(Source：CoinDesk)