BREAKING: BNY and Citadel Securities Settle First Tokenized Treasury Repo in Minutes — Wall Street Financing Moves Onchain

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BNY Citadel tokenized Treasury news first tri-party repo settles in minutes onchain trading finance

Wall Street's financing plumbing just moved onchain. BNY, the world's largest custody bank, and trading giant Citadel Securities have completed a tri-party repo transaction using a tokenized U.S. Treasury — the first time tokenized assets have been used on a major tri-party repo platform.

Here is how the deal worked. Citadel Securities bought a two-year U.S. Treasury note on the Tradeweb platform, the tokenized version of the note was recorded on BNY's private digital ledger, and it settled within minutes instead of the standard next-day T+1 cycle. Citadel then pledged that tokenized note as collateral for overnight repo financing, with BNY providing the cash.

Repo is one of the deepest funding channels in U.S. markets. Banks and trading firms pledge government bonds to secure the short-term loans that fund their daily positions, but moving those bonds between accounts and settlement systems takes time and leaves valuable assets sitting idle. Settling in minutes means the same collateral can be reused much faster, freeing up cash for other trades.

BNY says this is only the start. The bank plans to add more digital cash and tokenized deposit services to support blockchain-based settlement and financing, and it expects to extend its traditional settlement platform hours into European and Asian trading sessions next year — another step toward markets that run around the clock. BNY joins BlackRock, Franklin Templeton and JPMorgan in the race to bring traditional assets onchain.

For crypto traders, the signal is clear: blockchain is no longer only about trading coins. The world's biggest financial firms are now using the same technology for the core collateral that funds Wall Street itself, and every successful live deal like this one makes onchain finance harder to ignore.

Read also: BREAKING: $911 Billion Giant Federated Hermes Joins Tokenization Race — First Onchain Fund Shares Coming Early 2027

This post is news only, not financial advice. Always do your own research before buying or selling crypto.

Sources: CoinDesk, PANews, Coinotag



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