BNY Mellon and Castle Securities complete tokenized U.S. Treasury three-party repurchase transaction

According to an official press release from Bank of New York Mellon (BNY), BNY has completed a tri-party repurchase transaction process using tokenized U.S. Treasury securities with Citadel Securities, marking the first use of tokenized assets on a major tri-party repo platform.

Citadel Securities purchased a 2-year U.S. Treasury bond through BNY on the Tradeweb platform, with the tokenized representation recorded on BNY's private digital ledger, and settlement completed in minutes instead of the standard T+1 settlement cycle; subsequently, Citadel Securities used it as collateral for overnight tri-party repo financing, with cash provided by BNY.

BNY stated that it plans to launch more digital cash and tokenized deposit features to support on-chain settlement and financing, and expects to extend the operating hours of traditional settlement platforms to European and Asian trading sessions next year.