Treasuries on-chain - an industry case for change: whitepaper

What recent on-chain Treasury repo transactions mean for collateral, margining and market structure.

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Recent on-chain Treasury repo transactions have created a clearer industry case for tokenised collateral. This whitepaper examines what took place in July and October 2025, what it means for collateral and repo workflows, and how tokenisation could reduce friction without weakening risk control.

Stablecoin issuance today

Scale

A figure card showing USD 268bn in stablecoins in issuance, October 2025.

This scale establishes tokenised collateral as a market reality rather than a future concept, and creates a foundation for broader on-chain repo activity.

Growth in stablecoin issuance is one of the clearest signals that institutional confidence in on-chain financial instruments is building.

Margining issues widespread

Risk

A ring graphic showing 58% of firms with collateral and margining issues.

Collateral and margining challenges are not a minority experience — they affect more than half the market.

The prevalence of these issues defines the problem on-chain collateral solutions are being designed to address.

US market savings

Savings

This assumes 0.5 FTE per firm currently dedicated to collateral movements and reconciliations — a conservative and defensible baseline.

The savings case is grounded in current operating cost rather than theoretical efficiency, making the business case directly actionable for firms evaluating impact today.

Collateral mobility remains constrained by manual post-trade processes even though US Treasuries underpin daily liquidity at scale. Recent on-chain repo transactions have provided a more practical demonstration of how tokenised collateral could improve speed, control and operational efficiency across the market.

What changes when Treasuries move on chain in live collateral workflows? How strong is the business case for tokenising collateral if firms want to reduce friction without increasing risk?

The whitepaper examines the July and October 2025 on-chain Treasury repo transactions through detailed debriefs with the parties involved. It looks at what happened in practice, what the transactions signal for collateral and repo markets, and what firms need to consider if tokenised collateral is to move from isolated transactions to broader adoption.

The research, produced in partnership with Digital Asset, highlights:

Stablecoin issuance had reached US dollar (USD) 268 billion in October 2025, underlining the scale of tokenised collateral potential

58% face collateral and margining issues: more than half of firms continue to experience friction in collateral management and margining today

The US market alone could realise USD 54 million in operational savings without sacrificing risk control or income

The paper uses recent live transactions to examine how tokenised collateral could improve repo execution, collateral movement and post-trade efficiency

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