BNY said on October 13 that it had completed a triparty repo workflow with Citadel Securities using a tokenized representation of a U.S. Treasury, a transaction it described as the first reported use of tokenized assets on a major triparty repo platform. The workflow took the security from purchase and settlement into overnight financing, with BNY supplying the cash.
BNY and Citadel Securities complete tokenized Treasury triparty repo
The transaction puts a tokenized Treasury into an established segment of short-term funding markets rather than treating the digital representation as a standalone asset. In a triparty repo, collateral is held and administered by a third-party bank while one party obtains cash financing against the securities.
BNY’s announcement identifies Citadel Securities as the participant using the collateral and BNY as both the triparty platform operator and cash provider. The bank did not disclose the size of the trade in its release.
Two-year Treasury moved from Tradeweb purchase to repo collateral
Citadel Securities purchased a two-year U.S. Treasury note through BNY on Tradeweb, according to BNY’s October 13 release . BNY then recorded a tokenized representation of the note on its private digital ledger.
That representation settled within minutes, BNY said, rather than following the standard T+1 settlement cycle. The stated sequence matters because the asset was subsequently used for financing after settlement, linking the trade, settlement and collateral stages of the workflow.
BNY provided overnight financing against tokenized collateral
Citadel Securities used the tokenized Treasury as collateral in an overnight triparty repo after settlement, with BNY providing the cash financing.
The transaction tested whether a tokenized conventional government security could function as collateral in a live short-term funding workflow. According to CoinDesk , it also showed how tokenized Treasuries could move from settlement into short-term financing and potentially reduce delays in collateral mobility.
That is a potential operational benefit, not evidence of a broader change in standard market settlement or repo practices.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
