Cross-Border Repo with Gilts on Canton 2026

Key Points

• Global financial firms completed the first cross-border intraday repurchase agreement (repo) using tokenized UK government bonds (gilts) on the Canton Network.​
• The transaction marked the first use of tokenized gilts from the $2 trillion gilt market in such a cross-border structure.
• It featured the inaugural cross-currency intraday repo, exchanging tokenized gilts against tokenized deposits in a non-sterling (non-GBP) currency.
• Smart contracts embedded interest payments, haircuts, repo interest, and risk terms directly into the trade lifecycle, as provided by TreasurySpring.
• Participants included LSEG, Euroclear, DTCC, Tradeweb, Citadel Securities, Societe Generale, Archax, Cumberland DRW (Cumberland/DRW), TreasurySpring, Virtu Financial, Digital Asset, and IntellectEU.
• The fourth set of transactions on Canton followed December 2025 pilots using tokenized deposits across multiple currencies and assets.​
• Canton Network, developed by Digital Asset and governed by the Canton Foundation, enables real-time, privacy-preserving synchronisation and settlement for institutional finance.
• Only $28 trillion of high-quality liquid assets (HQLA) are usable as collateral today due to timing constraints; tokenization could unlock more from the $300 trillion global pool.
• The pilot demonstrates 24/7 collateral mobility, reducing reliance on end-of-day netting and regional cut-offs, potentially recycling balance sheets multiple times daily.
• Industry figures hailed it as a step toward efficient, scalable capital markets with frictionless liquidity across borders, sectors, and currencies.​

Canton(Cardiff Daily)February 25, 2026 – Global financial institutions have successfully executed the first cross-border intraday repo transaction utilising tokenized UK gilts on the Canton Network, marking a pivotal advancement in blockchain-enabled collateral management. This breakthrough involved major players such as LSEG, Euroclear, and DTCC, alongside digital asset firms, and introduced cross-currency elements with non-GBP tokenized deposits. The development promises to enhance real-time asset mobility in the $2 trillion gilt market and broader $300 trillion collateral universe.

What Was the Groundbreaking Transaction on Canton Network?

The transaction represented the fourth round of pilots by Canton’s industry working group, shifting from stablecoins and tokenized deposits to tokenized gilts for cross-border intraday repos. As detailed in the official announcement, it showcased asset diversification with gilts mobilised as collateral across jurisdictions for the first time.

As reported by staff writers at Securities Finance Times, the group conducted cross-border intraday repo transactions using tokenised gilts, including the first cross-currency variant against non-GBP tokenised deposits. This built on December 2025 efforts featuring multiple asset classes and currencies with tokenized deposits.​

Digital Asset’s Canton Network facilitated real-time ownership transfers, bypassing traditional batch settlements and market hours. Participants verified movements instantly on the shared ledger, reducing manual interventions.

Who Were the Key Participants in the Tokenized Gilts Repo?

The consortium united traditional finance heavyweights and fintech innovators. LSEG and Euroclear drove collateral movement at intraday speeds, aiming to eliminate legacy cut-off delays.

DTCC and Tradeweb supported synchronised settlement workflows across regions. Citadel Securities and Societe Generale assessed liquidity access, with Virtu Financial also involved.

Digital asset specialists Archax—a regulated exchange, broker, and custodian—and Cumberland DRW managed operational aspects. TreasurySpring embedded economic terms into smart contracts. Additional participants included Digital Asset, IntellectEU.

As noted by Blockonomi staff, the lineup validated the network’s cross-jurisdictional capabilities.​

How Did Smart Contracts Enhance the Repo Structure?

TreasurySpring integrated interest payments, haircuts, and risk terms directly into smart contracts, reflecting real economic conditions. This Canton Network first validated cross-currency intraday repo and reverse repo against UK gilts.

As reported by Matthew Longhurst, co-founder and chief innovation officer at TreasurySpring, in Securities Finance Times: “As a Canton network first, we have validated cross-currency intraday repo and reverse repo against UK gilts, with haircuts and repo interest embedded into the smart contracts to reflect real economic and risk terms. These transactions advance our long-term vision of frictionless liquidity and collateral mobility across borders, sectors, and currencies, all within an institutional governance framework. We believe these advances will bring real benefits to our clients, allowing both more efficient cash portfolio allocations and increased utility of Fixed-Term Funds.”​

The structure enabled intraday financing without overnight exposure, supporting 24/7 operations.

What Did Industry Leaders Say About the Achievement?

Chris Elms, CEO of Euroclear UK & International, stated in Securities Finance Times: “These Canton-enabled transactions represent a significant step forward for the industry working group in successfully tokenising gilts, while also demonstrating the encouraging pace at which transactions are now progressing across multiple asset classes.”​

Kelly Mathieson, chief business development officer at Digital Asset (noted as Kelly Matheison in some reports), remarked in Blockonomi: “only about $28 trillion of high-quality liquid assets are usable as collateral today,” arguing that timing constraints limit deployment, and real-time rails could unlock efficient balance-sheet use. In Securities Finance Times, she added: “With greater asset diversity and expanded participation from partners, we are paving the way for more efficient, liquid, and scalable capital markets. We’re eager to continue progress in European markets as well as other key markets in 2026.”

Mathieson further explained that “timing restricts access to global collateral,” with blockchain removing geography and hour barriers for instant transfers.​

Why Does This Matter for Global Collateral Markets?

The pilot addresses inefficiencies in cross-border funding, where liquidity shifts across time zones. By enabling continuous settlement, it could recycle balance sheets multiple times daily, boosting capacity.

Tokenization taps the $2 trillion gilt market and $300 trillion collateral pool, making underused HQLA more versatile without fragmenting infrastructure. Advocates see potential for safer, flexible operations.

Canton, backed by Goldman Sachs, DRW, BNY, and Nasdaq, prioritises privacy, compliance, and scalability as a public permissionless blockchain for institutions.

What Are the Future Plans for Canton Network?

The working group plans ongoing onchain financing collaborations throughout 2026, expanding in Europe and beyond. Upcoming efforts may include DTC and Fed-eligible securities in Q2 2026.

Deeper involvement from Euroclear, LSEG, IntellectEU, and Citadel signals European traction. The model depends on adoption by dealers, clearers, and regulators for scale.

This transaction underscores 24/7 global collateral mobility, accelerating always-on capital markets.