BNY has completed the first tokenised asset transaction on a major triparty repo platform.
It is the latest evidence that institutions are increasingly exploring tokenisation to speed up settlement times and improve collateral mobility across markets.
Carolyn Weinberg, Chief Innovation & Market Transformation Officer at BNY, said the transaction demonstrated how tokenised assets could be embedded into institutional market infrastructure.
“This transaction demonstrates what becomes possible when tokenised assets are used in institutional workflows. By using a tokenised representation of a U.S. Treasury across both settlement and financing, we are enabling more connected, efficient and always-on financial system,” she said.
The transaction saw Citadel Securities purchase a two-year US Treasury note through BNY on Tradeweb before a tokenised representation of the security was recorded on BNY’s private digital ledger and settled within minutes. The tokenised Treasury was then used as collateral in an overnight triparty repo transaction, with BNY providing cash in return.
According to BNY, the deal marks the first time a tokenised asset has been used on a major triparty repo platform and demonstrates how digital securities can move through the full institutional workflow, from trade execution and settlement to short-term financing.
Dan Doherty, Digital Assets Operations Lead at Citadel Securities, said efficient collateral movement was essential to functioning markets and that tokenisation could reduce friction across the trade lifecycle.
“We’re pleased to work with BNY on a practical use case that shows how tokenised U.S. Treasuries can move from settlement into financing more efficiently,” he added.
The announcement comes amid rapid growth in tokenised real-world assets. Tokenised US Treasuries have grown into a multi-billion-dollar market as major financial institutions seek faster settlement and round-the-clock access to collateral.
BNY, which oversees $62.6 trillion in assets under custody and administration, said it plans to expand its digital cash, tokenised deposit and extended-hours settlement capabilities as markets move towards more continuous trading.
