Stellar (XLM) Hosts First Regulated Treasury-Backed Repo Transaction With Under One Cent in Fees

Stellar has completed a Treasury-backed repurchase agreement through a pilot involving fintech companies Ascend Markets and M1X Global. According to the announcement, the transaction used tokenized U.S. Treasury securities and USDC stablecoins for collateralized lending.

The arrangement allowed participants to settle obligations through blockchain infrastructure without relying on centralized clearing systems. Smart contracts handled lending operations, including collateral management, interest calculations, and settlement across the transaction’s three-day duration.

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Stellar Processes 72 Automated Repo Cycles Over Three Days

The pilot operated from October 16 to October 19, covering 72 uninterrupted hours, including the weekend. During that period, automated contracts executed 72 consecutive hourly loan rollovers without requiring manual intervention from institutions.

Total Stellar network fees for the transaction remained below one U.S. cent across processing cycles. M1X Global supplied USDM1 securities backed by U.S. Treasury bills, while USDC provided the settlement currency.

The transaction followed repo standards associated with the Securities Industry and Financial Markets Association. Its borrowing rate matched the Secured Overnight Financing Rate plus 10 basis points, equivalent to 3.98% annually.

Chainlink oracles supported collateral valuation, while the arrangement applied a 2% haircut and a 98% loan-to-value ceiling. Automated counterparty verification and compliance procedures operated through the ERC-3643 and SEP-57 frameworks. These features enabled the transaction to operate during periods when conventional banking settlement infrastructure typically remains unavailable.

Stellar’s Tokenized Asset Market Reaches $3.64 Billion

The pilot coincided with tokenized real-world asset holdings across the Stellar network, including institutional investment products. RWA.xyz data placed Stellar’s tokenized asset value at approximately $3.64 billion on October 23, 2026.

Spicet Asset Management represented approximately $2.4 billion, making it the largest contributor to those holdings. Oasis accounted for another $557.92 million, while Franklin Templeton represented approximately $411.90 million in tokenized assets.

M1X Global’s USDM1 instrument also supported automated collateral reuse, enabling eligible Treasury-backed securities to serve additional financing arrangements. The completed transaction established a working example of continuous repo settlement using tokenized government debt and stablecoin liquidity. Participating institutions, the pilot demonstrated automated collateral processing across weekends alongside exceptionally low blockchain transaction fees.