Tokenovate settles intraday repo on Canton Network

Tokenovate executed and settled an intraday repurchase agreement on the Canton Network today using the FINOS Common Domain Model. Cash settlement was carried out in Circle-issued USDC and expressed on the network as USDCx Reserve. The activity took place in a controlled test environment rather than a live market.

The firm used CDM-native event and state management to coordinate both legs of the repo and to manage the transaction lifecycle. Tokenovate implemented trade representation, lifecycle processing, collateral movements and coordinated settlement on its platform.

Cash settlement was performed on the Canton Network using tokenised USDC reported as USDCx Reserve, which Tokenovate said demonstrated interoperability between tokenised cash and CDM-based workflows.

Tokenovate joined the Canton Foundation as a General Member and will participate in governance and development of the network and its standards.

The company stated the demonstration aligned with established market documentation and legal standards for repo transactions and positioned the test as a proof of concept for intraday financing and liquidity management. The exercise aimed to validate technical integration and workflow consistency across participants.

Georg Schneider, Global Head of RWA at Digital Asset, noted that intra-day repo activity suits onchain infrastructure because assets and cash can move together quickly without losing privacy or control. Scott O’Malia, ISDA chief executive, commented that automation will be constrained without interoperability and said implementing a common trade model inside distributed ledgers can help standardise post-trade automation.

Market context for the trial includes the U.S. shift to T+1 settlement and similar proposals under discussion in the UK and Europe, which have increased focus on faster settlement cycles and intraday liquidity. Tokenovate said further testing and coordination among institutions, regulators and market infrastructures will be required before comparable processes are used at scale in regulated markets.