BNY and Citadel Securities Complete First Tokenised Treasury Triparty Repo on a Major Platform
Key points
- BNY and Citadel Securities completed the first use of tokenised assets on a major triparty repo platform, with the transaction executed on Tradeweb.
- A two-year US Treasury note was tokenised on BNY's private digital ledger and settled within minutes, replacing the standard T+1 settlement cycle.
- The tokenised Treasury was subsequently used as collateral in an overnight triparty repo, with BNY providing cash, demonstrating a connected trade-to-financing workflow.
- BNY plans to add digital cash and tokenised deposit capabilities and expects to extend operating hours for traditional settlement platforms covering Fed-eligible securities.
- The workflow suggests tokenised collateral can reduce friction across the trade lifecycle while remaining within existing institutional market infrastructure rather than circumventing it.
BNY and Citadel Securities have completed a triparty repo workflow using a tokenised representation of a US Treasury note, marking the first use of tokenised assets on a major triparty repo platform. Citadel Securities purchased a two-year Treasury note through BNY on Tradeweb, after which a tokenised representation was recorded on BNY’s private digital ledger and settled within minutes, bypassing the standard T+1 cycle. That tokenised security was then posted as collateral in an overnight triparty repo, with BNY providing cash in return.
The transaction is significant because it takes tokenised assets beyond the issuance and settlement layer into live collateral and short-term financing workflows, the parts of market structure where mobility and speed matter most to institutional participants. BNY acts as both settlement agent and collateral manager in the US Treasury market, so completing the loop from execution through financing within a single digital workflow is a meaningful proof point rather than a theoretical demonstration.
BNY has indicated plans to introduce additional digital cash and tokenised deposit capabilities for institutional clients, and expects to extend operating hours for its traditional settlement platforms for Fed-eligible securities. The combination of near-instant settlement and integration with existing triparty infrastructure suggests the near-term roadmap is focused on extending the hours and reach of existing trusted market structure rather than replacing it.