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

CoinDesk

by Krisztian Sandor

February 24, 2026

AI-Generated Deep Dive Summary

A group of global financial institutions has made a historic breakthrough in the world of finance by completing the first cross-border, intraday repurchase agreement (repo) using tokenized U.K. government bonds on the Canton Network, a blockchain platform designed for institutional use. This landmark transaction involved digital versions of gilts, which represent a $2 trillion market, being utilized for the first time in an international repo trade. The deal also included a cross-currency trade where tokenized gilts were exchanged against deposits denominated in currencies other than the British pound. The repo process involves one party selling a security and agreeing to repurchase it later, often on the same day, allowing firms to access short-term cash. By placing both the cash and bonds on a shared blockchain, the transaction enables real-time collateral movement, eliminating the delays associated with traditional market hours and settlement cycles. This innovation aims to enhance liquidity and efficiency in global financial markets. The participants in this initiative include major financial institutions such as LSEG, Euroclear, DTCC, Tradeweb, Citadel Securities, and Societe Generale, alongside digital asset firms like Archax and Cumberland DRW. TreasurySpring integrated interest payments and risk management directly into smart contracts tied to the transactions, further streamlining the process. Kelly Matheison, chief business development officer at Digital Assets (the key developer behind the Canton Network), emphasized that only a small fraction of global high-quality liquid assets is currently used as collateral due to inefficiencies in traditional markets. By leveraging blockchain technology, institutions can transfer ownership and utilize collateral in real-time, 24/7, significantly improving efficiency. This development aligns with broader efforts to tokenize $300 trillion in global assets, including government bonds, to make them more accessible and useful as collateral. The successful test highlights the potential of blockchain to transform traditional financial systems

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Originally published on CoinDesk on 2/24/2026