Ascend Markets and M1X Global complete first Stellar-based repo with US Treasury bonds

Smart contracts drive 72 seamless transactions

The traditional repo market is restricted by the limited operating hours of settlement systems and relies heavily on back-office staff for manual collateral revaluation. In contrast, this operation by Ascend Markets and M1X Global transferred the entire repo process onto smart contracts, automating all core steps.

The pilot transaction started on October 16 and concluded on October 19, running continuously for 72 hours, including weekends when regular banking operations typically pause. A smart contract-based algorithm executed 72 hourly rollovers—extending the loan each hour—without any manual involvement. All aspects, including locking up collateral, calculating and applying interest, and handling the clearing process, ran automatically. Total network fees for the three-day period amounted to less than one US cent.

Pilot structure and compliance

The transaction’s structure conformed to standards from SIFMA, the Securities Industry and Financial Markets Association. The digital bonds used as collateral were USDM1 issued by M1X Global, fully backed 1:1 with US Treasury bills and subject to New York law. Stablecoins denominated in USDC served on the other side of the transaction.

Interest on the loan was fixed at SOFR plus 10 basis points, for a total of 3.98% annualized. Chainlink, a provider of decentralized oracles, monitored collateral value, applying a 2% haircut and maintaining a loan-to-value (LTV) cap of 98% throughout the cycle.

Compliance was also automated at the code level. Participants’ identities and required anti-money laundering (AML) and know-your-customer (KYC) checks took place directly on the blockchain, utilizing the ERC-3643 and SEP-57 token standards.

Mini dictionary: ERC-3643 and SEP-57 are technical token standards that enable compliance features—including on-chain KYC and AML checks—for blockchain-based securities and stablecoins.

Over 72 hours, the system processed hourly extensions and settled collateral movements automatically, despite the closure of conventional banking infrastructure during the weekend. Overall fees for the transaction cycle remained below a cent, demonstrating the network’s cost-efficiency.

RWA growth and industry impact

The development introduces new capital efficiency for the Stellar network. Market data from rwa.xyz shows that by the end of October 2026, the Stellar-based platform had integrated real-world assets (RWAs) valued at $3.64 billion. These assets were largely concentrated in money market funds managed by Spicet Asset Management at $2.4 billion, Oasis at $557.92 million, and Franklin Templeton at $411.90 million.

The USDM1 instrument now offers an instant rehypothecation capability, allowing collateral liquidity to be deployed around the clock. This provides a real-world demonstration that capital locked in sovereign debt instruments is now accessible and redistributable with near-zero operating costs, any time of the day or week.