Membrane Adds USDM1 to Institutional Financing

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

The integration allows institutional traders, borrowers, lenders, and custodians to use USDM1 in lending, repo, and collateral management. The platform supports financing negotiations, counterparty discovery, and collateral transfers, allowing institutions to use the same assets across different financing arrangements.

USDM1 represents a sovereign bond issued under New York law. It offers 24/7 availability and pays a sovereign coupon and 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 been used 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 later used in the first institutional repo on Stellar.

The asset is supported by custody providers including 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 its use to lending and other financing activities.

Image: Magnific