BNY Mellon and Citadel Securities complete a triparty repo using tokenized U.S. Treasuries, marking the first use of tokenized assets on a major triparty platform

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BlockBeats news,October 14, BNY Mellon (BNY) and Citadel Securities completed a triparty repo transaction using tokenized U.S. Treasuries. Citadel Securities purchased a 2-year U.S. Treasury through BNY Mellon on Tradeweb. The bank recorded a tokenized version of the bond on its private digital ledger and completed settlement within minutes, rather than the conventional T+1. Citadel subsequently obtained cash from BNY Mellon using the tokenized Treasury as collateral for an overnight triparty repo.

BNY Mellon said this was the first use of tokenized assets on a major triparty repo platform. Carolyn Weinberg, the bank’s head of innovation and market transformation, said that using a tokenized representation of U.S. Treasuries for both settlement and financing would help create a more connected, efficient, and round-the-clock financial system. The bank also plans to add digital cash and tokenized deposit capabilities for institutional settlement and financing, and intends next year to extend the operating hours of the relevant settlement platform to European and Asian trading sessions.

Original link https://m.theblockbeats.info/flash/371822

Key points

BNY Mellon and Citadel Securities completed a triparty repo transaction using tokenized U.S. Treasuries.
Citadel Securities purchased a 2-year U.S. Treasury through BNY Mellon on Tradeweb.
BNY Mellon recorded a tokenized version of the bond on its private digital ledger and completed settlement within minutes.
Citadel subsequently obtained cash from BNY Mellon using the tokenized Treasury as collateral for an overnight triparty repo.
BNY Mellon said this was the first use of tokenized assets on a major triparty repo platform.
BNY Mellon plans to add digital cash and tokenized deposit capabilities, and intends next year to extend the operating hours of the relevant settlement platform to European and Asian trading sessions.

AI-assisted interpretation

The following is analysis, separate from reported facts. Verify important claims independently.

The transaction converted U.S. Treasuries into tokenized versions on a ledger for rapid settlement, while continuing to use them as collateral for an overnight repo.

Why it matters to readers

The case shows that tokenized U.S. Treasuries were used for both settlement and financing in the process described in the material.

A repo is a transaction in which cash is borrowed against assets as collateral; here, the change is that the collateral consisted of tokenized Treasuries.

Risks and unknowns

The material does not provide the transaction size.
The material does not provide an official announcement from BNY Mellon or an independent transaction record.
Whether the relevant platform will extend its operating hours as planned, and whether digital cash and tokenized deposit capabilities will be implemented, has not been confirmed in the material.

BNY Mellon and Citadel Securities complete a triparty repo using tokenized U.S. Treasuries, marking the first use of tokenized assets on a major triparty platform

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