Nonco to accept USDM1 as collateral from eligible counterparties
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Nonco to accept USDM1 as collateral from eligible counterparties 10 November 2026US Reporter: Zarah Choudhary
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Nonco, an institutional digital asset firm, will now accept USDM1 as collateral from eligible counterparties and post USDM1 across its derivatives, financing, and institutional trading activities.
USDM1 is a natively issued, secured sovereign bond with different legal rights, economic characteristics, and applications across 24/7 institutional markets.
As a dual-recourse instrument, holders maintain enforceable rights to par redemption against a sovereign issuer and a first-priority perfected security interest in treasury collateral under Articles 8 and 9 of the Uniform Commercial Code.
M1X Global serves as coordinating agent.
USDM1 is compatible with industry-standard International Swaps and Derivatives Association (ISDA), Global Master Repurchase Agreement (GMRA), and Global Master Securities Lending Agreement (GMSLA) documentation, benefiting from robust US close-out netting protections.
Jeffrey Howard, head of North America and Partner of Nonco, says: “Nonco was early in demonstrating that tokenised fund interests could become productive collateral rather than simply investment products. Natively issued sovereign debt adds another important building block to our toolkit.”
Jordan Goldman, president and chief operating officer of M1X Global, adds: “Tokenisation is a technology, not an asset class. A payment stablecoin, a fund share, and a sovereign bond can all move onchain, but they remain fundamentally different financial instruments.
“Two assets with the same dollar value can have very different collateral economics depending on their legal rights, eligibility, netting treatment and financing characteristics."
Institutional custody and settlement infrastructure supporting USDM1 includes Anchorage Digital Bank, BitGo Bank & Trust, and tZERO's regulated broker-dealer custodian. USDM1 is also offered through Tradeweb and accepted by FDIC-insured Bank of Guam.
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Image: Chantip/stock.adobe.com 