Tradeweb has announced the successful completion of a transaction involving a tokenized US Treasury bond on blockchain infrastructure. In this transaction, asset manager Franklin Templeton transferred a tokenized Treasury security to Virtu Financial. The counterpart asset was tokenized cash, with settlement taking place on the Canton Network.
Instant settlement achieved on blockchain
Tradeweb facilitated the formation of the transaction price and execution of orders, while the Canton Network coordinated simultaneous settlement for both the bond and tokenized cash components. According to the participants, the transaction was finalized in real time. The financial terms of the deal were not disclosed.
Tradeweb emphasized that this marks the first instance in the industry where a tokenized US Treasury bond issued on Canton was transacted in real time in exchange for USDCx—a USDC-backed stablecoin.
Several major players took part in the process, including Blockdaemon, Digital Asset, Societe Generale, Franklin Templeton, Tradeweb, and Virtu Financial. Virtu Financial stands out as a global financial firm known for its high-frequency trading and market making activities. The Canton Network is a permissioned blockchain network dedicated to institutional financial applications.
Glossary: Tokenization refers to the creation of a blockchain-based digital representation of a traditional asset. Settlement refers to the final completion of a transaction, with transfer of assets and funds between parties.
Advance comes ahead of DTCC’s tokenization rollout
According to the statement, this transaction came ahead of the Depository Trust & Clearing Corporation’s upcoming launch of its Tokenization Services later this year. DTCC aims to enable the tokenization of select stocks, exchange-traded funds (ETFs), and US Treasury securities through the new service. The firm stresses that investor protection and ownership rights will be preserved under the same framework as traditional assets.
Franklin Templeton, too, has recently accelerated its moves into tokenized financial assets. Earlier this year, the asset manager partnered with Binance to let institutional clients use tokenized money market fund shares as trading collateral. Additionally, the company has started work with Ondo Finance to bring tokenized ETFs onto blockchain networks.
Blockchain adoption grows in sovereign debt markets
Governments are also taking steps to bring sovereign debt instruments onto blockchain systems. Multiple regulatory jurisdictions have launched digital bond pilots to test issuance, settlement, and market infrastructure using digital ledgers.
Hong Kong emerged as a pioneer in 2023 by issuing its first digital green bond. In November 2025, the government completed its third digital green bond issuance, raising 10 billion Hong Kong dollars—approximately $1.3 billion—across four currencies.
Last month, the Hong Kong government announced plans to establish a digital asset platform through the Hong Kong Monetary Authority to support the issuance and settlement of tokenized bonds. The platform is expected to expand to other digital assets and connect with regional tokenization networks. In the UK, the government assigned HSBC Orion to manage the Digital Gilt Instrument pilot, testing blockchain-based issuance, settlement, and secondary market operations for sovereign bonds.
Tokenized Treasury market hits $14.6 billion
According to data from RWA.xyz, the market for tokenized US Treasury products has reached $14.6 billion. Comprising 84 on-chain products, this segment now stands as the largest in the tokenized real-world assets market.
| Category | Value |
|---|---|
| Tokenized US Treasury market | $14.6 billion |
| Number of on-chain products | 84 |
| Hong Kong digital green bond issuance | 10 billion Hong Kong dollars |
| US dollar equivalent of Hong Kong issuance | $1.3 billion |
