BNY Uses Tokenized US Treasury in Landmark Citadel Securities Repo Deal
The test showed tokenized Treasuries can settle in minutes and then serve as repo collateral, BNY said.
- On Tuesday, BNY and Citadel Securities completed a transaction using tokenized U.S. Treasuries, demonstrating how blockchain technology could help Wall Street move assets between trading and financing more quickly.
- Transferring Treasuries between accounts and settlement systems often creates delays, tying up assets that firms could otherwise use for short-term loans and trading activity.
- The transaction aimed to demonstrate how tokenized Treasuries can move from settlement to financing, potentially allowing firms to reuse collateral sooner and free up cash for additional trades.
- Dan Doherty, digital assets operations lead at Citadel Securities, said reducing delays "could improve" institutional market operations, while Carolyn Weinberg, BNY's chief innovation and market transformation officer, emphasized enabling a "more connected" financial system.
- BNY plans to introduce further digital cash and tokenized deposit capabilities while extending its traditional settlement platform operating hours into European and Asian trading sessions next year.
21 Articles
21 Articles
BNY uses tokenized US Treasury in landmark Citadel Securities repo deal
BNY and Citadel Securities have completed a U.S. Treasury financing transaction using a tokenized security as collateral on a major triparty repo platform for the first time. According to BNY’s announcement, the transaction involved a 2-year U.S. Treasury note purchased…
BNY and Citadel Complete Landmark Tokenized Treasury Repo Deal
TL;DR BNY and Citadel Securities completed a triparty repurchase agreement using a tokenized U.S. Treasury note as collateral. The two-year Treasury note settled within minutes on BNY’s private digital ledger, compared with the traditional one-business-day settlement cycle. The transaction marks the first use of tokenized assets on a major triparty repo platform, opening up new ...
CryptoTendence BNY and Citadel Securities settled a Tokenized Treasury bond in minutes and used it as collateral in a tripartite repo. BNY and Citadel Securities entry carry a Tokenized Treasury bond to a tripartite repo was first published in CryptoTendence.
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