BNY and Citadel Securities completed a transaction in which a tokenized U.S. Treasury settled within minutes and then served as collateral for overnight financing. BNY did not disclose the transaction's value or execution date.
BNY and Citadel Securities completed a transaction in which a tokenized U.S. Treasury settled within minutes and was then used to obtain overnight financing, BNY announced on Oct. 13.
How the trade worked
Citadel Securities bought a two-year Treasury note through BNY on Tradeweb. A tokenized representation of the security was recorded on BNY's private digital ledger and settled within minutes, rather than in the standard next-day, or T+1, cycle, the bank said.
The firm then used the note as collateral in an overnight triparty repo, with BNY providing cash. In a triparty repo, an agent handles collateral management and settlement for the counterparties.
The announcement did not disclose the transaction's value or execution date, or say whether the cash leg also settled onchain. BNY's broader Global Collateral platform managed $8.2 trillion in collateral as of the second quarter of 2026.
A first for triparty repo, BNY says
BNY described the transaction as the "first use of tokenized assets on a major triparty repo platform." That claim concerns the financing infrastructure, rather than tokenized Treasury trading generally.
Earlier transactions had already linked tokenized Treasuries with digital cash. On July 1, Tradeweb announced that Franklin Templeton had transferred a tokenized Treasury to Virtu Financial in exchange for USDCx, with synchronized settlement on the Canton Network.
What BNY plans next
BNY's next steps extend beyond tokenization. In an accompanying BNY Institute paper, the bank said it expects to extend operating hours for traditional settlement platforms handling Fed-eligible assets later this year, with expansion into European and Asian trading hours in 2027.
It also aims to support 24/7 clearing for traditional and tokenized U.S. Treasuries in 2027.
Source: The Defiant
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