Landmark transaction demonstrates 24/7 institutional financing on the Stellar network with 72 consecutive automated hourly repo rolls over three days, including overnight and weekend operations

NEW YORK: Ascend Markets, LLC, a wholly owned subsidiary of PSG Digital Labs, Inc. (“Ascend”), and M1X Global today announced the successful completion of the first institutional repurchase agreement (repo) on the Stellar network. The transaction utilized USDM1, a US dollar-denominated sovereign bond issued natively onchain and secured 1:1 by short-duration US Treasuries, and marks a milestone in bringing institutional secured financing onto the Stellar network, one of the longest-running public blockchains, expanding the network’s established payments and transfer infrastructure into programmable repo markets.

Executed through Ascend’s institutional credit facility using the Stellar network’s smart contracts, the repo included 72 consecutive programmatic hourly rolls between October 16 and 19, including overnight and weekend financing without manual intervention. The transaction was priced at SOFR plus 10 basis points, equivalent to an annualized financing rate of 3.98%, with interest accruing daily, a 2% collateral haircut and a maximum loan-to-value ratio of 98%. The repo concluded with repayment and return of USDM1 collateral, with all aspects of the closing process completing successfully. The trade is a demonstration of the capital efficiency of tokenized sovereign collateral and Ascend’s support for the asset class.

The first institutional repo transaction combined several important institutional financing capabilities on the Stellar network. These included continuous repo financing under an executed and enforceable master repurchase documentation, and the Stellar network’s smart contracts supporting pledging, financing, automated rolls, repayment and collateral release. The Repo trade was the first to use Chainlinks new Data Feeds for USDC on Stellar network as its price Oracle and USDM1’s published par redemption value supported collateral valuation, while Ascend’s infrastructure incorporated identity, access permissions, compliance rules, and operational controls.

The transaction used Stellar Asset Contract (SAC) tokens for both legs and demonstrated institutional financing functionality directly on Stellar Mainnet. The aggregate network fees on the Stellar network for the automated hourly rolls added up to a fraction of a cent.

Repos are foundational to global capital markets, supporting trillions of dollars in daily financing activity. Banks, broker-dealers, trading firms, and investment funds rely on repo to finance securities positions, fund inventory, mobilize collateral, and manage balance-sheet exposures. Roughly 80% of global repo is collateralized by sovereign bonds.

Traditional repo infrastructure operates within established banking, custody and settlement workflows which limits institutional flexibility in managing collateral, and constrains collateral movement outside business hours. The Ascend-M1X Global transaction demonstrates how secured sovereign debt can be financed, repurchased and mobilized continuously on public blockchain infrastructure, combining conventional repo economics - including benchmark-linked financing rates, collateral haircuts and established contractual protections - with automated execution, settlement and collateral management.

Dennis O’Connell, Chief Executive Officer & Co-Founder, Ascend and President of ERC-3643 Association, said “Repo is fundamental to institutional capital markets, yet much of the infrastructure supporting it remains constrained by traditional settlement windows. Together with M1X Global, we have demonstrated that repo financing can operate continuously on the Stellar blockchain while preserving the legal protections, compliance controls and financing mechanics that financial institutions require. Accomplishing this trade with transaction-based fees attributable to Ascend’s U.S. broker-dealer subsidiary, together with executed SIFMA Repo Agreements, USDC as settlement, and real sovereign debt during off hours as the first ever institutional repo transaction on the Stellar network, is a tremendous milestone.”

Jordan Goldman, President and Chief Operating Officer, M1X Global, said “The ability to finance and mobilize collateral is fundamental to how modern capital markets function. By combining secured sovereign debt with programmable repo infrastructure on the Stellar network, institutions have the ability to mobilize the same collateral more efficiently and support more financing activity with a given collateral pool. These transactions demonstrate how blockchain infrastructure and continuous digital markets can expand the capabilities of institutional secured financing.”

USDM1 is a US dollar-denominated sovereign bond issued natively onchain by the Republic of the Marshall Islands under New York law. Structured in the tradition of fully collateralized Brady bonds, it is secured 1:1 by short-duration US Treasury instruments held in a bankruptcy-remote structure. It is compatible with ISDA, GMRA, GMLSA agreements for derivatives, repo and securities lending. Cleary Gottlieb Steen & Hamilton LLP advised as issuer’s counsel. Its integration into Ascend's financing facility demonstrates how established institutional financing arrangements can be seamlessly extended into continuously operating blockchain networks.

The first completed institutional repo on the Stellar network establishes an operational foundation for additional institutional repo and secured financing activity. In combining natively-issued secured sovereign debt, institutional custody, enforceable repo documentation, programmable collateral controls and continuous settlement, the breakthrough transaction enables institutional financing markets in which collateral can be mobilized, financed and redeployed around the clock, rather than being limited by conventional settlement windows.

About Ascend

Ascend is a U.S. based technology and financial holding company, integrating a proprietary infrastructure of regulated U.S. broker-dealer licenses and prime-brokerage technology for digital securities. Ascend is thus constructed as a one-stop regulatory and technical solution for institutional financing for securities lending, repurchase, swaps, and collateral upgrade. Its protocol acts as the neutral tri-party agent and is implemented in both Stellar and EVM networks based on the principles of the ERC-3643/ SEP-57 standards for digital securities. Learn more at ascend.gl.

Ascend was conceived in response to the SEC’s Project Crypto announcement and Chairman Paul Atkins’ call for the development of the next generation of onchain U.S. Capital Markets infrastructure and today announces the first realization of that mandate by providing U.S. markets by providing the first onchain credit facility for collateral mobility and lending of digital securities, purpose built to operate in consonance with existing securities laws.

Ascend was the first to present a Digital Tri-Party Solution to the SEC Crypto Task Force on September 18, 2026. The presentation highlighted this trade and Ascend’s novel reuse of ERC-3643/SEP-57 to achieve a complete, native integration of applicable securities and BSA/AML regulatory requirements, including Identity, Access Controls, Compliance Rules, and Operational Controls, in an onchain credit facility.

Ascend is committed to advancing regulated, transparent, and resilient market infrastructure that encourages onshore capital markets issuance and enhanced liquidity through onchain solutions that are executed within the securities regulatory framework - an approach that is critical to ensuring continued global trust in the U.S. as a leader in global finance.

About USDM1

USDM1 is a fully collateralized, USD-denominated sovereign bond natively issued onchain. It is structured in the style of a Brady bond under New York law, with an explicit customary waiver of sovereign immunity, and secured on a 1:1 basis by short-duration US Treasury instruments pledged to a US trust company in a bankruptcy-remote structure. It is compatible with ISDA, GMRA, GMLSA agreements for derivatives, repo and securities lending. Cleary Gottlieb Steen & Hamilton LLP serves as issuer’s counsel. It is issued by the Republic of the Marshall Islands, which operates exclusively on the US dollar standard under its Compact of Free Association with the United States.

About M1X Global

M1X Global is a sovereign financial infrastructure and technology company bridging public finance and onchain capital markets. Operating in public-private partnership with the Republic of the Marshall Islands, M1X Global coordinates the legal, compliance, technology, custody and institutional infrastructure behind sovereign digital instruments. M1X Global is a member of the DTC Digital Assets Solution Industry Working Group created to advance tokenization and digital assets.

Disclaimer

The content of this communication is for informational purposes only and is not intended to market, offer, or solicit you to buy or sell USDM1 or any financial product directly from Ascend Markets, PSG Digital Labs, M1X Global, the Republic of the Marshall Islands or otherwise. USDM1 is being offered and sold solely outside the United States in reliance on Regulation S under the United States Securities Act of 1933, as amended (the "Securities Act"). The Republic of the Marshall Islands has not registered any offering of USDM1 under the Securities Act, or any other US federal and state securities laws. Accordingly, USDM1 may not be offered, sold, pledged or otherwise transferred in the United States or to, or for the account or benefit of, US Persons (as defined in Regulation S), unless they are registered, or exempt from, or not subject to, registration under the Securities Act.

Nothing in this communication constitutes, or should be construed as, a recommendation by Ascend Markets, PSG Digital Labs, M1X Global, the Republic of the Marshall Islands or any third party to acquire or dispose of USDM1 or any other security, or to engage in any investment strategy or transaction.

Forward-Looking Statements

This release contains forward-looking statements. Forward-looking statements are not historical facts. Words such as anticipates, believes, estimates, expects, intends, plans, will and similar expressions are intended to identify them. Statements regarding trends relating to USDM1, and future expansions or projects relating to USDM1, are examples of forward-looking statements. Such statements reflect current views and are subject to risks and uncertainties, and rest on assumptions including general economic and market conditions, industry conditions and operating factors. There is no guarantee that the expected events or results will occur, and any change in those assumptions could cause actual results to differ materially from current expectations.

Fonte: Business Wire