Membrane Labs, an institutional digital asset financing platform, has integrated USDM1, a tokenized US sovereign bond issued by M1X Global, into its lending and collateral infrastructure. USDM1 is backed 1:1 by short-term US Treasury instruments. The integration broadens the range of assets institutions can use as collateral for secured financing on Membrane.

The integration enables institutional traders, borrowers, lenders, and custodians to use USDM1 for lending, repo, and collateral management. Membrane’s platform supports financing negotiations, counterparty discovery, and collateral transfers, enabling institutions to use the same assets across different financing arrangements.

USDM1 represents a sovereign bond issued under New York law. It is available 24/7 and pays a sovereign coupon. The token is designed to work within established institutional agreements, including ISDA, GMRA, and GMSLA. Through Membrane, institutions can also use it for intraday financing and collateral substitution.

USDM1 has already featured in several institutional transactions. It served as the sovereign securities leg in the first fully on-chain repo transaction involving Virtu Financial and Tradeweb on Canton Network. It was subsequently used in the first institutional repo on Stellar.

Custody providers supporting the asset include Anchorage Digital Bank, BitGo Bank & Trust, and tZERO. Trading firms STS Digital and Nonco have also adopted USDM1 for institutional collateral operations. The new integration extends the token’s use to lending and other financing activities.

Image: Magnific

Source: cryptonews.net. Adapted by NBTC.