Key Highlights
- Tradeweb completed the first real-time on-chain U.S. Treasury transaction using USDCx on the Canton Network.
- Franklin Templeton transferred a tokenized Treasury security to Virtu Financial in exchange for tokenized cash.
- The transaction settled in real time without traditional settlement windows.
Tradeweb, a fintech company, has completed the first real-time on-chain transaction involving a tokenized U.S. Treasury security against tokenized cash (USDCx) on the Canton Network.
According to an announcement released on Wednesday, the transaction marked the first real-time buy-sell transaction of an on-chain U.S. Treasury against USDCx without relying on off-ledger cash settlement.
Franklin Templeton transferred a tokenized U.S. Treasury security to Virtu Financial in exchange for USDCx. Tradeweb provided electronic trade execution and price discovery, while the Canton Network synchronized settlement between the tokenized Treasury security and the tokenized cash.
The transaction demonstrates how tokenized securities and tokenized cash can settle simultaneously on-chain through synchronized delivery versus payment.
Real-time settlement removes traditional market constraints
Unlike conventional financial markets, where custody, payment, and settlement often occur separately and only during market hours, the Canton Network enabled both the Treasury security and tokenized cash to settle simultaneously on blockchain infrastructure.
Tradeweb said the transaction shows how institutional trading can support real-time settlement while maintaining familiar market workflows.
Elisabeth Kirby, Head of Market Structure at Tradeweb, said, “This transaction is an important step in demonstrating how Tradeweb’s execution capabilities can support the next generation of digital markets.” She added that the transaction showed participants could exchange both a tokenized U.S. Treasury and tokenized cash without relying on traditional settlement cycles.
Tradeweb said it plans to continue supporting clients as digital asset markets evolve.
Supporting the next generation of capital markets
The transaction comes ahead of the planned launch of DTCC’s Tokenization Services later this year. According to Digital Asset, the milestone highlights how tokenized real-world assets can move continuously rather than being limited by traditional settlement windows.
Kelly Mathieson, Chief Business Development Officer at Digital Asset, said, “This is another key milestone as we work alongside market participants to build an always-on, interoperable, and secure capital markets infrastructure.”
Digital Asset said the Canton Network is designed to synchronize multiple asset classes while supporting privacy, compliance, and institutional requirements.
Franklin Templeton and Virtu participate
Franklin Templeton said the transaction represents another step in developing continuous liquidity for tokenized assets.
Tony Pecore, Senior Vice President and Director of Digital Asset Management at Franklin Templeton, stated, “Every transaction like this is a building block toward a 24/7 liquidity layer, where high-quality assets move with the trust and rigor institutions demand, free of traditional market-hour constraints.”
Virtu Financial also said the transaction demonstrates the potential for market makers to provide liquidity in tokenized securities.
Dan Eckstein, Head of Fixed Income Sales at Virtu Financial, said, “This transaction further demonstrates the potential of moving real-world assets on-chain.”
Institutional tokenization continues accelerating
The transaction involved several institutional participants, including Blockdaemon, Digital Asset, Franklin Templeton, Société Générale, Tradeweb, and Virtu Financial.
Earlier this year, Bitwise launched a Canton Network (CC) ETP in Europe, providing investors with exposure to a blockchain focused on tokenized real-world assets (RWAs) and institutional finance.
DTCC’s Tokenization Services are also expected to launch later this year as financial institutions continue expanding tokenization initiatives.
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