Nonco Expands Collateral Toolkit to Include Secured Sovereign Debt
Nonco, an institutional digital asset firm, has expanded its collateral toolkit by incorporating USDM1—a secured sovereign bond—as a form of collateral across derivatives, financing, and trading activities. This move follows the company's early adoption of tokenized money market fund shares as live transaction collateral in OTC trades. USDM1 is described as the world’s first natively issued secured sovereign debt instrument backed 1:1 by short-dated U.S. Treasuries held in a bankruptcy-remote trust structure governed under New York law. It offers dual recourse to both the issuer and Treasury collateral, with enforceable redemption rights. The adoption of USDM1 is expected to enhance financing flexibility for institutional clients due to its high-quality legal characteristics and compatibility with standard financial documentation such as ISDA agreements.
Tickers: $USTB
Topics: derivatives institutional_trading sovereign_bonds tokenized_assets