Digital Asset and a consortium of major financial institutions have completed an on-chain U.S. Treasury repo transaction on the Canton Network, involving USDC as the cash leg and tokenized Treasuries as collateral.

The trade, executed on Tradeweb during the weekend, is being positioned as an industry first for enabling atomic settlement of both legs entirely on-chain within a public-permissioned institutional network.

Per the announcement, the Treasuries were custodied at the Depository Trust Company (DTC), a subsidiary of the Depository Trust & Clearing Corporation (DTCC), and then mirrored onto Canton for use as freely transferable collateral.

USDC was minted natively on Canton to support the transaction, enabling instant exchange and removing reliance on traditional banking hours or Fedwire settlement. The execution over a Saturday demonstrated the potential for continuous financing and collateral mobility outside legacy market windows.

Participants included Bank of America, Citadel Securities, Societe Generale, Virtu Financial, DTCC, Circle, Cumberland DRW, and Tradeweb, among others.

The firms described the trade as part of the Global Collateral Network initiative, which seeks to integrate high-quality liquid assets such as Treasuries into a unified, always-on market infrastructure that combines institutional compliance requirements with programmable settlement.

What makes this special?

While tokenized Treasuries are already issued on public blockchains such as Ethereum, Polygon, Arbitrum, XRP, Avalanche, and Stellar by multiple asset managers and fintechs, most existing implementations either settle one leg off-chain or operate without large-scale participation from major banks and central securities depositories.

In this case, both cash and collateral were tokenized and settled atomically on the same ledger within a framework designed for permissioned institutional use, integrated directly with established trading venues.

Tradeweb’s platform handled execution, with the transaction designed to preserve participant confidentiality while demonstrating technical feasibility.

According to the announcement, additional transactions using the same structure are planned later this year as part of broader testing of the network’s interoperability and privacy features.

The Canton Network describes itself as a public, interoperable blockchain with permissioned access for regulated entities, aiming to link separate applications and asset types into a single environment for cross-asset settlement.

The repo trade forms part of its roadmap to connect traditional financial infrastructure with on-chain settlement rails for round-the-clock market operations.

HodlX Guest Post  Submit Your Post

The industry should be pushing for public awareness on the difference between self-custody and holding your Bitcoin with a third party.

Bitcoin treasury companies are potential honeypots for nationalization in a future where the US government is attempting to maintain its dominant role in the global order by seizing BTC amid the US dollar being dropped as the world’s reserve currency.

Bitcoin treasury companies hold Bitcoin in their treasury as a reserve asset. Michael Saylor’s MicroStrategy was the first company to pursue the strategy.

Data shows public companies are in possession of one million Bitcoin companies as of mid-2025.

Discussions around Bitcoin treasury companies rarely mention financial sovereignty. Bitcoin has generally been used by companies as a means to leverage BTC and boost stock prices.

For instance, the Charles Schwab analysis of these companies offer investors a novel way to gain exposure to crypto while diversifying corporate balance sheets, but does not mention financial sovereignty.

Schwab wrote, “Strategy made its commitment to cryptocurrency in 2020 and helped create the framework for Bitcoin treasury-holding companies, which can offer another way for investors to gain exposure to cryptocurrencies.”

Instead of empowering individuals to feel confident holding Bitcoin in a cold wallet, we are giving them easy options in which they do not hold their own private keys.

On the contrary, Bitcoin has largely been viewed – especially by its early adopters – as having the potential to separate money from the state.

Whether treasury companies are a tool for liberty has yet to be seen.

Early Bitcoin adopters – such as Adam Back – herald Bitcoin treasury companies as bolstering Bitcoin’s role as a global store of value independent of the state.

This thesis is unlikely to play out. Bitcoin treasury companies instead are tentacles of the state in a way.

They have gone public. Accountants and lawyers answer to regulators and often exercise a lot of power alongside executives within the corporate structure.

The truth is simple – Bitcoin treasury companies cannot operate independently of the state. They are the main targets of government scrutiny, which makes them candidates for a nationalization push.

The state could easily consider corporate Bitcoin holdings as a threat to fiat currency.

Central banks – 90% of them, according to the International Monetary Fund – are developing CBDCs (Central Bank Digital Currencies) to preclude the need for Bitcoin as a reserve asset, suggesting governments already see Bitcoin as a threat.

If Bitcoin unseats fiat currencies, Bitcoin treasury companies could be nationalized, in which states confiscate corporate assets.

There is precedent for such an action – the 1933 US Executive Order 6102 required citizens to turn in their gold to the government.

Moreover, the US government has nationalized companies in the past.

During World War I and II, the government nationalized railroads, telegraph lines and other industries in order to support war efforts.

The US Railroad Administration nationalized railroads between 1917 and 1920.

During World War II, coal mines, steel mills and even retailer Montgomery Ward were seized to ensure continued production and prevent disruptions.

Montgomery Ward might have been a Bitcoin treasury company if it were under the same leadership as it was at the time of its nationalization.

Sewell Avery was the chairman of Montgomery Ward. He refused to comply with the labor union and the War Labor Board’s demands.

“To hell with the government,” Avery reportedly yelled in April 1944 when Attorney General Francis Biddle confronted him. “I want none of your damned advice.”

Avery sounds like a Bitcoiner.

The government has also taken over numerous financial institutions. In 1984, the government took an 80 percent interest in Continental Illinois Bank, which was considered ‘too big to fail.’

During the 1989 Savings and Loan Crisis, the government set up the Resolution Trust Corporation to manage more than 1,000 failed savings and loan institutions.

This cost the government more than $125 billion over six years.

In the 2008-2009 financial crisis, mortgage giants Fannie Mae and Freddie Mac were placed under federal conservatorship in 2008.

The US government acquired a 60% stake in General Motors in a bankruptcy agreement. Canada took another 12.5%.

The Trump Administration has de facto nationalized US steel by retaining significant control over business activities.

A considerable share of the US public is pro-nationalization. Activists and policy experts have supported nationalizing fossil fuel companies to combat climate change.

The nationalization of healthcare has been spearheaded by mainstream politicians like Bernie Sanders amid 63% of Americans calling for a nationalized system in 2020.

Due to these reasons, Bitcoin treasury companies are honeypots for state nationalization – and that’s why these companies have nothing on Bitcoin self-custody.

Kadan Stadelmann is the chief technology officer of Komodo Platform. He is a blockchain developer and operations security expert with experience ranging from working in operations security in the government sector and launching technology startups to application development and cryptography.

Check Latest Headlines on HodlX

Follow Us on Twitter Facebook Telegram

Check out the Latest Industry Announcements  

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

A former executive of the hedge fund founded by billionaire Ray Dalio is warning that the market for US debt will soon hit a rough spot.

In a new CNBC Television interview, ex-Bridgewater Associates chief investment strategist Rebecca Patterson addresses how the US dollar has lost about 10% of its value year-to-date, its worst performance in over 50 years.

“I think there are three main things driving the dollar [devaluation]. One is slightly lower frontend rates, interest rates over this period because currencies trade on rate differentials. 

But I think more importantly and what’s different this time is that you’re seeing both re-allocation out of the US both by Americans diversifying and foreigners pulling back slightly. And then third and really importantly is hedging. So let’s say I’m a large overseas pension fund, and I have a tech equity exposure, and I want to keep it because I believe in the structural story, but I’m nervous about the dollar, I’m nervous about the Fed’s independence, I can hedge out that currency risk. 

So even if money stays in US equities, which helps explain where we are today, you can still see that dollar weakness.”

Patterson, who is now the chair of the Council of Economic Education, warns that the dollar devaluation will continue as investors hedge and move their capital elsewhere. She also notes that the ongoing capital re-allocation will negatively impact demand for US debt.

“This isn’t going to be a one-off. This is going to be a slow bleed out of the dollar, and I believe slowly out of US Treasuries.”

Looking closer at US Treasuries, Patterson warns that she sees the bond market facing a demand shortage in the coming months.

“I think this is rather a slow bleed. Most of the foreign investors who have US Treasuries have them in very short tenure bonds, so three years and less. They just have to let them expire and not replace them, so let them roll off. 

Again, it’s not going to be a one-and-done event, I think, without a trigger. It’s just going to be: we don’t have the demand to meet the supply that’s going to be coming, I think early next year.” 

Follow us on X, Facebook and Telegram

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Surf The Daily Hodl Mix

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney

This week, bitcoin hit a new all-time-high (above $118K) on the back of strong ETF flows and at least $280 million in new bitcoin treasury investments.

Treasury projects are also cropping up for Ethereum and Solana. Notably, Joseph Lubin’s SharpLink ETH treasury bought 10,000 ETH for that project, and Bitmine announced plans to raise $2 billion for more ETH buying. Off that strong signal, large-cap “alts” like ETH and SOL saw near year-to-date highs, carrying other hot projects like SUI higher as well.

It was a week when the crypto markets seemed to be enjoying themselves as new legislation nears and investment flows from new institutional sources.

The U.S. House said it would take up the Senate version of the GENIUS stablecoin bill, making final passage easier. And industry leaders met on Capitol Hill to lobby for a comprehensive “Market Structure” bill.

It wasn’t all plain sailing for innovators in the space. Robinhood faced skepticism over its tokenized stock plans, and then the Florida AG launched a lawsuit claiming the fintech engaged in deceptive crypto pricing.

The Trump family’s own crypto dealings continued to make news. Trump Media announced a multi-asset ETF application. And, Tron founder Justin Sun bought $100 million of $TRUMP and promised to help the memecoin go big in Asia and Africa.

Next week (dubbed “Crypto Week”) promises to be historic for crypto news. The House considers stablecoin and market structure legislation and the Senate has a hearing planned on digital asset taxation. First a trickle, then a flood.

July 10th, 2025 – Dubai, UAE

Falcon Finance, a synthetic dollar protocol, has completed its first live mint of USDf using tokenized U.S. Treasuries, marking a major step forward in integrating real-world assets (RWAs) into DeFi with full composability.

The transaction, which used Superstate’s tokenized short-duration Treasury fund (USTB) as collateral, was executed through Falcon’s production infrastructure. This milestone shows how regulated, yield-bearing assets can now directly support onchain liquidity—without the need for siloed systems or custom DeFi infrastructure.

Unlike many RWA initiatives that focus solely on tokenizing assets, Falcon’s architecture is designed for productive utility. Tokenized assets are not just parked in wrappers—they become active collateral, deployed into risk-managed, market-neutral strategies that power the USDf stablecoin.

“Tokenization is just the beginning,” said Artem Tolkachev, RWA Strategy Lead at Falcon Finance. “The real challenge is making those assets usable—so they can earn, hedge, and build within an open, composable system. This first mint shows that institutional-grade assets can move beyond proof-of-concept into functional onchain liquidity.”

Falcon’s approach embeds both institutional asset holders and DeFi capital providers within the same infrastructure. USDf, Falcon’s overcollateralized synthetic dollar, can be minted using either crypto-native or real-world assets, enabling users to unlock liquidity without selling their holdings.

This live mint reflects a broader roadmap for Falcon, which aims to onboard a diverse set of yield-generating real-world assets.

Upcoming collateral types include:

• Tokenized Treasuries – liquid and low-risk
• Money market funds – professionally managed with predictable returns
• Investment-grade corporate credit – introducing moderate credit risk and flexible flows
• Emerging market sovereign debt – higher yields with macro-level exposure
• Private credit and revenue-based lending – tied to real-world productivity

Each asset class must meet strict standards for custody, enforceability, and pricing transparency.

By connecting permissioned yield sources with permissionless DeFi strategies, Falcon is building the infrastructure to make real-world assets functionally composable onchain. This architecture is designed to align incentives across institutions, DAOs, protocols, and allocators alike—paving the way for a more robust and scalable financial layer.

About Falcon Finance

Falcon Finance is a synthetic dollar protocol that allows users to mint USDf against both crypto and tokenized real-world assets. It combines delta-neutral yield strategies with institutional-grade standards in risk management, transparency, and capital efficiency. Learn more at https://falcon.finance.

Contact

Managing Partner
Andrei Grachev
Falcon Finance
press@falcon.finance

One of the investors who called and profited off the subprime mortgage collapse of 2008, Steve Eisman, is brushing off concerns over the rising US budget deficit.

In a new interview on CNBC, the Wall Street investor says the heavy demand for US treasuries from across the globe suggests there’s no cause for worry over the deficit.

“There’s a great slogan that I think really applies to politics and international affairs, which is when someone tells you who they are, believe them. But in the market, when someone tells you who they are, don’t believe them [until when] they actually do something with their money.

So all the people who are pontificating about this… The price of this risk is a 10-year Treasury yield. And what’s happened to the 10-year Treasury yield? It’s been directionless since December of 2022. So the more important question is given that all these people are pontificating about it, why hasn’t it moved? And again, I think the reason is there’s no alternative to Treasuries.

If there was a real alternative to Treasuries, then all of this stuff about the deficit is something that I would pay attention to. But as long as there’s no alternative, there’s nothing to talk about.”

Eisman also says the demand for US bonds all over the world is “insatiable” and that he believes investors will always show up in Treasury auctions to accumulate government debt.

Late last month, Eisman said he was optimistic about the stock market due to the long-term growth potential of the US economy.

“We’ve been in a bull market pretty much for the last 10 years with some fits and starts. And so buy the dip has become almost a religion. It’s a religion that right now I largely subscribe to because I am of the view… that the US economy is more dynamic than it’s ever been in my lifetime. So long term, I am very bullish.”

Follow us on X, Facebook and Telegram

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Surf The Daily Hodl Mix

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney