M1X Global today confirmed its participation in the Tokenized Collateral Working Group and US Industry Sandbox co-sponsored by the International Swaps and Derivatives Association (ISDA) and Global Digital Finance (GDF), powered by Ownera.
M1X Global joined industry leaders from organizations including DFNS, BitGo, CME Group, Intercontinental Exchange, Fidelity Investments, Standard Chartered and Stellar Development Foundation exploring the use of tokenized collateral, including USDM1, in institutional derivatives, repo and lending markets. The US Industry Sandbox followed a GDF working group in the European Union and United Kingdom in 2025.
The Working Group and Industry Sandbox explored paths to utilize always-on, tokenized collateral as margin, repo and securities lending collateral - benefitting from real-time programmability and 24/7 delivery - which can drive trillions of dollars of efficiency improvements in the cleared and uncleared initial and variation margin collected each year within existing collateral, custody and margin systems.
Sandbox participants named in ISDA and GDF's report on tokenized collateral, including M1X Global, explored topics including, industry opportunities for faster-settling collateral to improve Standardized Approach for Counterparty Credit Risk ("SA-CCR") outcomes and, to reduce capital requirements firms currently hold against intraday liquidity needs or funding exposures. Firms also discussed industry HQLA needs, collateral close-out netting rights, and insolvency protections under US bankruptcy and securities laws.
M1X's experience is informed by its work coordinating the development of USDM1, the world's first natively-issued, USD-denominated onchain sovereign bond. USDM1 is characterized under the UCC as a financial instrument - the same characterization that governs conventional securities collateral - and, in ISDA netting sets, can be netted on close-out alongside conventional collateral. Rather than being excluded from exposure calculations as an unrecognised digital claim. As a government security rather than a fund interest, USDM1 reaches the same destination from the other side of the collateral schedule.
Jordan Goldman, President and COO of M1X Global, said: "It's a privilege to work alongside the institutions defining the future of 24/7 tokenized collateral. We've spent years helping coordinate and structure USDM1 with the Republic of the Marshall Islands and USDM1 ecosystem partners, and are proud to bring our experience - and USDM1 as a collateral asset - to these efforts."
USDM1 is custodied through Anchorage Digital and through BitGo's federally regulated bank as well as tZERO's SEC-registered broker-dealer custodian, with Surus serving as US trust company. FDIC-insured Bank of Guam has also announced support for USDM1.