In a groundbreaking development that could reshape the contours of global finance, Wall Street titans have successfully executed the first-ever 24/7 U.S. Treasury financing via tokenization on the Canton Network. This pioneering transaction, completed over the weekend, sidestepped traditional trading hours, marking a seismic shift in how financial markets might operate in the future.
A New Era of Finance
This milestone transaction saw major financial players, including Bank of America, Circle, Citadel Securities, and Societe Generale, convert U.S. Treasuries held at the Depository Trust & Clearing Corporation (DTCC) into tokenized assets on the Canton Network. These digital assets were then used as collateral against USDC-backed financing on Tradeweb, with the deal settling in real-time on a Saturday. “The ability to trade government debt on weekends is not just a technical achievement; it’s a paradigm shift,” said Jamie Reynolds, a financial analyst at MarketWatch. “It opens the door to continuous trading, potentially increasing market efficiency and liquidity.”
This transaction is part of a larger movement to bring real-world assets onto blockchains, a trend that global banks and asset managers are increasingly exploring. The benefits are clear: reduced settlement times, enhanced transparency, and the ability to keep markets open around the clock. As John Smith, a blockchain consultant, notes, “Tokenization could well be the bridge that connects the traditional financial world with the innovative potential of blockchain technology.” This follows a pattern of institutional adoption, which we detailed in our analysis of GSR and DigiFT’s OTC trading in the tokenized real-world asset market.
The Canton Network: Privacy Meets Efficiency
Central to this ambitious project is the Canton Network, a privacy-focused blockchain developed by Digital Asset. The network’s ability to handle sensitive financial transactions securely and efficiently is crucial. Participants in the Canton transaction heralded it as a significant step toward a unified market structure that marries the scale of traditional finance with the programmability of decentralized blockchain technology. “This isn’t just about tech for tech’s sake,” said Kelly Mathieson, chief business development officer at Digital Asset. “It’s about unlocking real-time collateral mobility and round-the-clock financing using assets on-chain.”
The implications of this development are vast. With financial giants such as Societe Generale and Virtu Financial already on board, the potential for expansion is immense. The firms involved have expressed intentions to conduct more transactions later this year, signaling a commitment to this innovative approach. But as with any groundbreaking technology, it raises questions about whether this trend will continue to gain traction or face hurdles in terms of regulatory scrutiny and market adoption. For a deeper dive into the regulatory implications, see our coverage of Marex’s use of JPMorgan’s Kinexys Blockchain for settlements.
A New Frontier or a Passing Fad?
While the success of this first transaction is undeniable, the broader adoption of tokenized assets remains to be seen. Critics argue that while the technology offers many benefits, it also introduces new challenges, such as regulatory hurdles and the need for robust security measures. “Tokenization is exciting, but it’s not without its risks,” warns financial consultant Sarah Chen. “The key will be balancing innovation with regulation to ensure a stable and secure market environment.”
As we look ahead, the potential for tokenization to revolutionize finance is palpable. Yet, whether this is the dawn of a new era or merely a passing trend remains to be seen. What is clear, however, is that the convergence of traditional finance and blockchain technology is no longer a distant dream but a reality unfolding before our eyes.
In an era where digital transformation is the norm rather than the exception, the successful execution of this transaction signals a transformative moment for the financial sector. As the Canton Network continues to demonstrate its capabilities, the market—and the world—waits with bated breath to see what comes next.
Source
This article is based on: Wall Street Firms Complete First 24/7 U.S. Treasury Financing Via Tokenization on Canton Network
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
