Repos are the plumbing of capital markets. Banks, funds, and intermediaries use them every day to raise financing by pledging bonds as collateral, and around 80% of repos worldwide are backed by sovereign debt. Now, one of them has been executed from start to finish on the Stellar network.

Ascend Markets, a subsidiary of PSG Digital Labs, and M1X Global completed the first institutional repo transaction on Stellar between October 16 and 19. The details:

• 72 automatic rollovers, one every hour—including overnight and on weekends—with no manual intervention.

• SOFR + 10 basis points, or 3.98% annually, with daily interest and a 2% haircut on the collateral.

• Settlement in USDC, Chainlink prices as the oracle, and standard SIFMA repo documentation.

• Network fees of a fraction of a cent for all rollovers.

The collateral was USDM1, a dollar-denominated sovereign bond issued directly on-chain by the Republic of the Marshall Islands under New York law and backed 1:1 by short-term U.S. Treasury bills. The transaction ended with repayment and the return of the collateral.

One important caveat: USDM1 is sold only outside the United States and, unless registered or exempt, cannot be offered to U.S. persons.

My take: what’s interesting isn’t the size, which the note doesn’t disclose, but the timing. Traditional repos depend on the settlement cycles of banks and custodians, so they grind to a halt overnight and on weekends. Here, the collateral was financed continuously, with the same contractual protections as always. This is the kind of use case that makes tokenization more than just a symbolic issuance.

Full analysis at territorioblockchain.com

#Stellar #Tokenización #RWA