BNY to trial tokenized Treasuries for 24/7 U.S. settlement

Published: 2026-07-23 08:56:05 |

BNY Mellon says it will move toward 24/7 settlement for U.S. Treasuries—both conventional and tokenized—by 2027. After a successful after-hours test, the bank plans to reduce the weekend lag that can delay reserve adjustments. Key steps: BNY will test tokenized Treasuries on a private blockchain by year-end. It will also expand its settlement network later this year to cover more of the Asian, European and U.S. trading windows. The earlier test reportedly used stablecoin reserves tied to short-dated government debt: Ripple’s RLUSD and OpenEden’s USDO. The transaction was executed after Fedwire Securities stopped processing secondary-market Treasury transfers for the day, with Tradeweb handling the trade. BNY said settlement completed shortly afterward through existing cash rails, demonstrating that Treasury activity linked to stablecoin reserves can continue after the main U.S. market hours. Why it matters for trading: RLUSD and USDO tokens trade continuously, but the underlying Treasuries still depend on weekday settlement windows—so large stablecoin creations/redemptions or collateral calls can create timing delays. A path to 24/7 settlement could improve liquidity operations for tokenized-Treasury and stablecoin issuers and lower operational friction for institutional desks managing collateral and reserves.

Neutral

This is a market-structure and infrastructure upgrade rather than a new crypto product with immediate demand for BTC/ETH. BNY’s plan to test tokenized Treasuries and expand settlement coverage aims to reduce operational timing risk (including weekend lag) for stablecoin-linked reserve management. That can be mildly positive for the tokenized-Treasury/stablecoin ecosystem, but it’s not directly tied to spot trading flows in major coins. Short term: traders may view it as incremental “plumbing progress,” with limited immediate price impact. Any sentiment lift is more likely to be concentrated in narratives around tokenized real-world assets and institutional settlement. Long term: if 24/7 settlement materially reduces collateral-call delays and improves liquidity management, it could increase institutional comfort and turnover in tokenized reserve setups. Similar infrastructure rollouts in crypto history (exchange matching upgrades, stablecoin settlement improvements, tokenization pilots) typically support the ecosystem before broader market-wide repricing—often taking time to translate into measurable trading volume.