Ascend and M1X Global Complete First Institutional Repo Transaction on Stellar Blockchain

Ascend Markets and M1X Global have completed the first institutional repurchase agreement on the Stellar network, utilizing the USDM1 sovereign bond. For fintech professionals, this marks a significant shift in programmable repo markets, demonstrating that institutional secured financing can operate continuously on a public blockchain with automated rolls and negligible transaction fees.

What was announced

The transaction represents a milestone in expanding Stellar’s payment infrastructure into programmable repo markets. The repo was executed through Ascend’s institutional credit facility and featured 72 consecutive programmatic hourly rolls between October 16 and 19. This included overnight and weekend financing conducted entirely without manual intervention. Pricing was set at SOFR plus 10 basis points, resulting in an annualized financing rate of 3.98%, with a 2% collateral haircut and a maximum loan-to-value ratio of 98%.

The collateral used was USDM1, a US dollar-denominated sovereign bond issued natively onchain by the Republic of the Marshall Islands and secured 1:1 by short-duration US Treasuries. The trade utilized Stellar Asset Contract (SAC) tokens for both legs of the transaction on the Stellar Mainnet. To manage valuation, the process integrated Chainlink’s new Data Feeds for USDC on the Stellar network as its price oracle, alongside USDM1’s published par redemption value. The technical execution relied on Stellar’s smart contracts to handle pledging, automated rolls, repayment, and collateral release. Despite the high frequency of the programmatic rolls, aggregate network fees totaled less than a cent. The transaction concluded with the successful repayment and return of the USDM1 collateral, proving the capital efficiency of tokenized sovereign assets in a live institutional environment.

"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."

Dennis O’Connell, Chief Executive Officer & Co-Founder, Ascend and President of ERC-3643 Association.

The companies involved

Ascend Markets, LLC operates as a wholly owned subsidiary of PSG Digital Labs, Inc. The firm focuses on institutional credit facilities and infrastructure that incorporates identity, access permissions, and compliance rules for digital asset markets. M1X Global is a provider of onchain sovereign debt instruments, most notably the USDM1 bond. This asset is issued under New York law and structured to be compatible with standard industry agreements such as ISDA, GMRA, and GMLSA for derivatives and securities lending. The Stellar network, which hosted the transaction, is one of the longest-running public blockchains in the industry. Originally established to facilitate global payments and asset transfers, the network has increasingly moved toward supporting programmable financial instruments through its smart contract capabilities. The network’s infrastructure is designed for high-speed, low-cost transactions, which in this instance allowed for hourly rolls at a fraction of the cost associated with traditional settlement systems. Together, these entities are working to bridge the gap between traditional sovereign debt markets and decentralized ledger technology.

What FF News has reported before

FF News has closely tracked the evolution of the Stellar network and the rise of onchain repo markets. In August 2026, we reported that Virtu Financial and Tradeweb Complete World’s First Fully Onchain Repo Using USDM1 Sovereign Bond, highlighting the early institutional adoption of M1X Global’s tokenized debt. Stellar’s utility in mainstream finance was further evidenced when MoneyGram Launches Stablecoin-Backed Card for Everyday Spending via Stellar Network, and again when BVNK Scales Mastercard-Backed Stablecoin Infrastructure with Stellar Integration. These developments underscore a broader trend of traditional financial services migrating core functions to the Stellar blockchain to leverage its speed and settlement efficiency.

What this means

This announcement moves the needle for institutional liquidity management by proving that the repo market—the plumbing of the global financial system—can function outside of traditional banking hours. By automating 72 consecutive hourly rolls, the transaction challenges the necessity of T+ settlement windows and manual intervention in secured financing. Traditional clearing houses and custodians may find themselves under increasing pressure to modernize as institutions realize they can mobilize collateral more efficiently onchain. The successful use of a sovereign bond issued by the Marshall Islands also raises questions for the sector regarding the future dominance of traditional jurisdictions in the tokenized debt space.