USDM1

USDM1 is the first sovereign, USD-denominated digital bond issued natively on-chain. It is a dual-recourse instrument - USD-denominated sovereign debt of the Republic of the Marshall Islands, fully collateralized by short-dated U.S. Treasuries held in a bankruptcy-remote U.S. trust.

Structurally, USDM1 mirrors the established Brady-bond model. The instrument is issued under a New York-law indenture, includes explicit waivers of sovereign immunity and provides a trustee-enforced par redemption right backed by U.S. Treasury collateral. It is eligible for close-out netting under U.S. federal bankruptcy safe harbors and can be perfected under UCC Article 8/9.

In institutional workflows, USDM1 is designed for capital efficiency. Its structure supports treatment as a financial instrument, enables initial-margin reduction and credit-risk mitigation and is compatible with HQLA and CRM frameworks under Basel standards. USDM1 is structured to operate within established ISDA, GMRA and GMSLA collateral and netting frameworks.

Through the Canton Network, USDM1 delivers Treasury pass-through yield and enables 24/7 on-chain financing, repo, settlement, and collateral reuse within regulated institutional workflows.

Roles

• Apps (All)
• Apps (Featured)

Network Utility

• Stablecoins
• Tokenized Assets
• Liquidity
• Financing

Connected to

• Global Synchronizer