Current outcome
BNY and Citadel Securities have completed the first tri-party repo on a major platform using a tokenized asset, using a tokenized 2-year U.S. Treasury as collateral, settling in minutes on BNY's private digital ledger and moving into overnight tri-party repo financing. BNY plans to add digital cash and tokenized deposit capabilities and aims to extend related settlement platform hours to European and Asian trading sessions next year.
Progress timeline
2 material updates- #01
BNY, Citadel Securities test tokenized U.S. Treasuries to speed up Wall Street financing
BNY, described as the world's largest custody bank, and trading firm Citadel Securities said on Tuesday they had completed a transaction using tokenized U.S. Treasuries, showing how blockchain-based government bonds could move from settlement into financing. BNY also said it plans to add digital cash and tokenized deposit capabilities and to extend the operating hours of its traditional settlement systems for Federal Reserve-eligible securities and U.S. triparty transactions, with the aim of reaching European and Asian trading hours next year. The effort targets a key bottleneck in financial markets: moving government bonds used as collateral for trading and borrowing can take time, tying up assets that could otherwise be put to work. Citadel Securities digital assets operations lead Dan Doherty said efficient movement of high-quality collateral is fundamental to well-functioning markets and that reducing delays across the trade lifecycle could improve how institutional markets operate. The transaction was a demonstration of how tokenized government bonds could move from settlement into financing, potentially letting firms reuse collateral sooner and free up cash for other trades. BNY chief innovation and market transformation officer Carolyn Weinberg said using a tokenized representation of a U.S. Treasury across both settlement and financing enables a more connected, efficient and always-on financial system.
Source evidence: CoinDesk · theblockbeats
- #02
纽约梅隆银行与Citadel Securities完成代币化美债三方回购，为主要三方平台首次使用代币化资产
The new report specifies the transaction was the first tri-party repo on a major platform using a tokenized asset: Citadel Securities bought a 2-year U.S. Treasury via BNY on Tradeweb, BNY recorded a tokenized version on its private digital ledger and settled in minutes, then Citadel used the tokenized Treasury as collateral for an overnight tri-party repo to obtain cash from BNY.
State after update: BNY and Citadel Securities have completed the first tri-party repo on a major platform using a tokenized asset, using a tokenized 2-year U.S. Treasury as collateral, settling in minutes on BNY's private digital ledger and moving into overnight tri-party repo financing. BNY plans to add digital cash and tokenized deposit capabilities and aims to extend related settlement platform hours to European and Asian trading sessions next year.
Source evidence: theblockbeats · foresightnews