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Ascend and M1X Global Complete First Institutional Repo on Stellar Using USDM1 Secured Sovereign Bond

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Ascend and M1X Global Complete First Institutional Repo on Stellar Using USDM1 Secured Sovereign Bond

Ascend Markets, LLC, a wholly owned subsidiary of PSG Digital Labs, Inc. (“Ascend”), and M1X Global 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.

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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.


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