tZERO's SEC-registered digital asset custodian now supports USDM1, a USD-denominated sovereign bond from the Marshall Islands backed 1:1 by U.S. Treasuries. The integration enables institutional participants to hold on-chain collateral within regulated framework, with 24/7 settlement and institutional-grade financing features.
tZERO Group announced that USDM1, a tokenized sovereign bond issued by the Republic of the Marshall Islands and backed 1:1 by short-duration U.S. Treasury instruments, is now available through tZERO Digital Asset Securities, an SEC-registered broker-dealer custodian. The development extends regulated custody and collateral infrastructure to an institutional-grade on-chain asset that integrates directly into existing workflows for margin, repo, and financing. USDM1 is structured as sovereign debt under New York law with collateral perfected under the UCC, enabling compatibility with ISDA netting frameworks. The asset is currently issued on Stellar, Canton, and Solana, providing institutions with flexibility for settlement and operational efficiency. This milestone reflects momentum in bridging traditional financial infrastructure with blockchain-based assets, as institutions increasingly seek regulated pathways to access tokenized securities and on-chain collateral.
