BNY and Citadel Securities completed a tokenized two-year U.S. Treasury transaction, settling within minutes instead of the standard T+1 cycle. Citadel Securities pledged the tokenized Treasu
BNY and Citadel Securities have completed a triparty repurchase agreement using a tokenized U.S. Treasury note, connecting digital settlement with institutional financing. The transaction involved a two-year Treasury note purchased through Tradeweb, recorded on BNY’s private digital ledger, and settled within minutes. Citadel Securities then used the tokenized security as collateral for overnight financing.
https://twitter.com/BNYglobal/status/2110111120841224418?s=20Citadel Securities purchased the Treasury note through BNY on Tradeweb. After execution, BNY recorded a tokenized representation of the security on its private digital ledger, completing settlement within minutes instead of the standard T+1 cycle.
Following settlement, Citadel Securities pledged the tokenized Treasury in an overnight triparty repo. BNY provided cash in return, allowing the security to move from trade settlement into a short-term financing arrangement.
The transaction marked the first use of tokenized assets on a major triparty repo platform, according to BNY. It also demonstrated how tokenized securities can serve as collateral within existing institutional market infrastructure.
Carolyn Weinberg, BNY’s chief innovation and market transformation officer, said the transaction demonstrated how tokenized assets could support connected settlement and financing workflows.
Brian Ruane, BNY’s global head of clearance and collateral management, credit services and corporate trust, said Treasury market infrastructure must keep pace with increasingly continuous activity.
Laide Majiyagbe, BNY’s global head of markets, said efficient collateral placement remains important for clients as markets move faster. Dan Doherty, Citadel Securities’ digital assets operations lead, said reducing friction across the trade lifecycle could improve institutional market operations.
BNY plans to introduce additional digital cash and tokenized deposit capabilities for institutional settlement and financing. The company also expects to extend operating hours for traditional settlement platforms handling Federal Reserve-eligible securities and U.S. triparty transactions.
Next year, BNY intends to extend those operating hours into European and Asian trading sessions. The company expects tokenization and longer operating hours to develop together as institutions pursue more flexible settlement arrangements.
The transaction used a tokenized representation of an existing Treasury security rather than replacing the underlying asset. It connected trade execution, rapid settlement and overnight collateral financing within one workflow.
