Timeline
- 8.0
BNY and Citadel Securities Use Tokenized Treasury in Overnight Repo
BNY (Bank of New York Mellon) and market maker Citadel Securities executed an overnight repurchase agreement in which a tokenized Treasury was used, according to The Defiant. The transaction places a blockchain-represented government debt instrument inside a core short-term institutional funding trade rather than in a standalone tokenization pilot. Overnight repo is the plumbing through which institutions borrow and lend cash against Treasuries, so using a tokenized Treasury there signals tokenized real-world assets edging from investment products into collateral and settlement functions. The trade was structured as an overnight repo, a short-term secured loan in which securities are sold and repurchased the next day. It involved BNY, a major custodian bank, and Citadel Securities, one of the largest Treasury market intermediaries.
- 7.5
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.