Bank of New York Mellon and Citadel Securities complete tokenized U.S. Treasury three-party repurchase: the first use of tokenized assets on a major three-party platform

Bank of New York Mellon (BNY) and Citadel Securities completed a tri-party repurchase process using tokenized U.S. Treasury bonds. Citadel Securities purchased a 2-year U.S. Treasury bond through Tradeweb via Bank of New York Mellon, which recorded the tokenized version of the bond on its private digital ledger and completed the settlement within minutes, rather than the traditional T+1.

Subsequently, Citadel used the tokenized Treasury bond as collateral for overnight tri-party repurchase to obtain cash from Bank of New York Mellon. Bank of New York Mellon stated that this is the first use of tokenized assets on a major tri-party repurchase platform. Carolyn Weinberg, the bank's head of innovation and market transformation, stated that using the tokenized representation of U.S. Treasury bonds for both settlement and financing helps create a more connected, efficient, and round-the-clock financial system. The bank also plans to enhance its capabilities for digital cash and tokenized deposits for institutional settlement and financing, with plans to extend the operating hours of the relevant settlement platform to European and Asian trading sessions next year.