BNY Mellon and Citadel Securities Complete Tokenized US Treasury Triparty Repo, Marking First Use of Tokenized Assets by a Major Triparty Platform

BlockBeats news, October 14: Bank of New York Mellon (BNY) and Citadel Securities completed a tri-party repo process using tokenized U.S. Treasuries. Citadel Securities bought a 2-year U.S. Treasury through BNY on Tradeweb, and the bank recorded a tokenized version of the bond on its private digital ledger, completing settlement in minutes rather than the traditional T+1. Citadel then used the tokenized Treasury as collateral for an overnight tri-party repo to obtain cash from BNY.

BNY said this is the first use of tokenized assets on a major tri-party repo platform. Carolyn Weinberg, its head of bank innovation and market transformation, said using a tokenized representation of U.S. Treasuries for both settlement and financing helps create a more connected, more efficient, and always-on financial system. The bank also plans to add digital cash and tokenized deposit capabilities for institutional settlement and financing, and intends to extend the operating hours of the related settlement platform to European and Asian trading sessions next year.