Ascend and M1X Global complete automated Stellar blockchain repo transaction

Ascend and M1X Global have announced the successful completion of an institutional repurchase (repo) transaction utilizing the Stellar blockchain. The transaction involved 72 consecutive hourly rolls conducted between October 16 and October 19.

The process utilized an institutional credit facility and onchain smart contracts to manage the pledging, funding, repayment, and return of collateral. The transaction featured USDM1, a US-dollar sovereign bond issued natively onchain by the Republic of the Marshall Islands and secured by short-duration US Treasury instruments. This differs from standard stablecoins like USDC, as the participants integrated legally specified debt collateral and identities with blockchain-based execution.

According to the firms, the financing was priced at SOFR plus 10 basis points, resulting in a 3.98% annualized rate at the time. The transaction maintained a two-percent collateral haircut and a 98-percent maximum loan-to-value ratio. Chainlink data feeds were used to provide price information during the demonstration.