What Hub71 Startup HIFI's Latest Milestone Means for the Future of Digital Finance

Global financial markets move trillions of dollars every day, yet transferring cash and collateral between institutions can involve multiple systems, counterparties, and settlement processes, particularly across different markets and time zones.

Hub71 startup HIFI recently completed an onchain repurchase agreement (repo) transaction with global trading firm DRW on the Canton Network, a blockchain platform designed for regulated financial institutions. Executed with Marex acting as prime broker, the transaction demonstrated how digital infrastructure can support the movement of funding and collateral while maintaining the institutional processes and market structures already used by financial market participants.

The transaction also reflects growing industry interest in exploring how blockchain infrastructure can support established financial markets, particularly in areas where faster settlement and greater operational efficiency may provide practical benefits.

Understanding the role of repo markets

Repurchase agreements, commonly known as repos, are a fundamental part of global financial markets. They allow financial institutions to access short-term funding by using high-quality assets, such as U.S. Treasuries, as collateral, helping support liquidity across the financial system.

According to the U.S. Office of Financial Research, the U.S. repo market supports approximately US$12.6 trillion in daily outstanding exposures, making it one of the world's largest funding markets. Industry research has also identified repo as one of the leading use cases for tokenised financial assets.

Traditionally, repo transactions rely on established market infrastructure and trusted intermediaries to facilitate execution and settlement. HIFI's transaction explored how digital infrastructure can be integrated into that process, enabling cash and collateral to move in near real time while preserving the workflows and safeguards institutional participants already rely on.

Bringing established financial workflows onto digital infrastructure

One notable aspect of the transaction was that it followed familiar institutional practices rather than introducing a new operating model.

The trade was executed through a competitive request-for-quote (RFQ) process, mirroring the approach commonly used in traditional repo markets. Marex acted as prime broker, while the transaction enabled the simultaneous settlement of cash and collateral within seconds, reducing delays associated with conventional settlement cycles.

By combining established market practices with digital infrastructure, the transaction illustrated one way blockchain technology can support existing funding markets while working within institutional execution frameworks.

Why this matters

Financial institutions increasingly operate across multiple markets, currencies and time zones. As trading activity becomes more global and market infrastructure continues to evolve, institutions are exploring technologies that can improve the efficiency of moving cash and collateral.

Digital infrastructure is one area receiving increased attention, particularly where it can complement existing financial systems rather than replace them.

Transactions such as HIFI's contribute to that broader conversation by demonstrating how blockchain technology can be applied to established institutional workflows.

Supporting financial innovation from Abu Dhabi

As a Hub71 startup, HIFI is contributing to Abu Dhabi's growing position as a global hub for digital assets and financial innovation. Through the Hub71+ Digital Assets ecosystem, startups can connect with regulators, investors, infrastructure providers and corporate partners supporting the development of blockchain and Web3 technologies.

By developing infrastructure that enables institutions to move capital more efficiently, HIFI is demonstrating how founders building from Abu Dhabi are contributing to the ongoing development of financial technologies designed to support global markets.