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BNY and Citadel put a tokenized Treasury to work in repo

BNY and Citadel Securities settled a tokenized two-year Treasury in minutes, then used it as repo collateral, bringing blockchain into institutional financing.

The Top Crypto Editors 2 min read

BNY and Citadel put a tokenized Treasury to work in repo

Can a tokenized Treasury move from settlement into financing within minutes? BNY and Citadel Securities completed a triparty repo using a tokenized two-year U.S. Treasury, which BNY says is the first use of tokenized assets on a major triparty repo platform. Citadel bought the note through BNY on Tradeweb; BNY recorded its tokenized representation on a private digital ledger and settled it within minutes. The bank’s announcement says Citadel then used the tokenized Treasury as collateral in an overnight repo, with BNY providing cash.

What did the token change in the repo workflow?

It let the security move from trade execution to settlement and then into collateral financing in one connected workflow. BNY says the tokenized note settled within minutes, compared with the standard T+1 settlement cycle. In a triparty repo, BNY manages the collateral process between the cash lender and borrower; here, it also provided the cash. The Block reported that the deal used BNY’s private ledger, rather than a public blockchain.

Does this mean Treasury repos now settle onchain around the clock?

No: the announcement confirms one completed workflow, not a general switch to continuous onchain repo trading. BNY did not disclose the transaction’s size, and its announcement describes the Treasury representation as recorded on its private ledger. The bank said it plans additional digital cash and tokenized deposit capabilities for institutional settlement and financing. It also expects to extend operating hours for traditional settlement platforms handling Fed-eligible securities and U.S. triparty transactions, with expansion into European and Asian trading hours planned for 2027.

What should you watch next?

The next test is whether BNY’s stated plans turn this single workflow into broader service availability. Tokenized collateral can move faster within the bank’s infrastructure, but the announcement does not establish how widely other institutions can use it or whether the cash leg will be tokenized. For now, the confirmed transaction shows a Treasury token used in both settlement and overnight financing. Watch for BNY’s planned expansion into European and Asian trading hours in 2027.

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