BNY and Citadel Complete Tokenized Treasury Repo Test

BNY and Citadel Securities completed a triparty repo transaction using a tokenized U.S. Treasury, which BNY described as the first reported use of tokenized assets on a major triparty repo platform. The test shows how a tokenized Treasury can serve as collateral in established short-term funding markets. Citadel bought a two-year Treasury note through BNY on Tradeweb. BNY recorded a digital representation of the note on its private ledger and settled it within minutes, rather than the standard T+1 cycle. Citadel then pledged the tokenized Treasury in an overnight repo, with BNY providing cash and administering the collateral. The transaction’s size and financing rate were not disclosed. BNY plans to expand its digital cash and tokenized deposit services and extend Treasury settlement operations into European and Asian trading hours next year. The trial points to potential gains in settlement speed and collateral mobility, but does not establish a broad shift in market practice. For crypto traders, it signals institutional experimentation with tokenization, not an immediate catalyst for cryptocurrency prices or market liquidity.