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BNY and Citadel Securities execute first tokenized Treasury repo on triparty platform

BNY and Citadel Securities have completed an overnight triparty repo transaction using a tokenized two-year U.S. Treasury note as collateral, with settlement finalized in minutes.

Graphic announcing BNY completing a tokenized U.S. Treasury triparty repo transaction with Citadel, set against a nighttime city skyline with glowing digital network lines.
Image: @BNYglobal

BNY announced that it collaborated with market maker Citadel Securities to execute what it described as a first-of-its-kind transaction using tokenized assets on a major triparty repo platform. In the overnight financing trade, Citadel Securities pledged a tokenized two-year U.S. Treasury note as collateral, with BNY providing cash in return.[6][1][2][3]

The two-year Treasury note was bought through BNY on Tradeweb before being tokenized on BNY's private digital ledger. Rather than following the conventional T+1 settlement cycle, the tokenized version settled within minutes, illustrating how digital infrastructure can operate alongside traditional systems to enhance settlement speed and collateral mobility.[1][6][5]

According to CoinDesk, the test was designed to show how blockchain-based sovereign debt can assist trading firms in transferring collateral more rapidly between settlement and financing.[4]

Key facts

  • BNY and Citadel Securities completed an overnight triparty repo financing transaction using a tokenized U.S. Treasury note as collateral.
  • BNY described the trade as the first use of tokenized assets on a major triparty repo platform.
  • The two-year U.S. Treasury note was tokenized on BNY's private digital ledger.
  • The tokenized note settled within minutes instead of the standard T+1 settlement cycle.
  • The underlying two-year Treasury note was purchased through BNY on Tradeweb.
  • Citadel Securities pledged the tokenized note as overnight collateral, with BNY providing cash in exchange.

Sources 路 6 sources

  1. CB

    Coin Bureau@coinbureauPost on X 路

    馃嚭馃嚫 JUST IN: Citadel Securities and $62.6T BNY officially complete a tokenized US Treasury repo. Citadel used the tokenized note as collateral overnight, with BNY providing cash in return. BNY says it's the first use of tokenized assets on a major triparty repo platform. The two year note was bought through BNY on Tradeweb, and its tokenized version settled within minutes instead of the standard T+1 cycle.

    Open source
  2. CO

    CoinDesk@CoinDeskPost on X 路

    JUST IN: @BNYglobal and @Citadel Securities complete a blockchain-based financing transaction using tokenized U.S. Treasuries as collateral. https://t.co/OBpc7c2DxJ

    Open source
  3. CO

    Cointelegraph@CointelegraphPost on X 路

    馃嚭馃嚫 NEW: BNY completes a first-of-its-kind transaction with Citadel Securities on a major triparty repo platform, using a tokenized two-year US Treasury note as collateral. https://t.co/5HGTX92a50

    Open source
  4. CO

    CoindeskArticle 路

    BNY, Citadel Securities test tokenized U.S. Treasuries to speed up Wall Street financing The transaction shows how blockchain-based government bonds could help trading firms move collateral faster between settlement and financing.

    Open source
  5. TW

    The Wolf Of All Streets@scottmelkerPost on X 路

    NEW: BNY AND CITADEL SECURITIES COMPLETE BLOCKCHAIN-BASED FINANCING TRANSACTION USING TOKENIZED U.S. TREASURIES AS COLLATERAL, WITH SETTLEMENT IN MINUTES https://t.co/ns9eDO6ao8

    Open source
  6. BN

    BNY@BNYglobalPost on X 路

    BREAKING: #BNY completes first-of-its-kind transaction with tokenized assets on major triparty repo platform in collaboration with @Citadel Securities. A 2-year U.S. Treasury note was #tokenized on BNY's private digital ledger, settled within minutes, and used as collateral in an overnight triparty repo鈥攄emonstrating how traditional and digital infrastructure can work together to improve settlement speed and collateral mobility. (1/2) Release: https://t.co/I09GbUu168

    Open source