Ascend and M1X Global announced on October 23, 2026, that they had completed an institutional repurchase transaction on the Stellar blockchain using USDM1, an onchain sovereign bond, as collateral. The firms reported 72 consecutive hourly rolls between October 16 and October 19 and said the financing was priced at SOFR plus 10 basis points, or a 3.98% annualised rate at the time, with a 2% collateral haircut and a 98% maximum loan-to-value ratio.
USDM1 was the bond collateral; USDC was used for cash settlement. The transaction involved prepared participants under defined agreements. It does not show that retail users can borrow at the quoted rate or that the system would perform the same way in a market shock. The reported near-zero network fees for hourly rolls do not account for the full costs of institutional financing.
