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 possibilities for institutional settlement and financing.
BNY and Citadel Securities completed a triparty repurchase agreement (repo) using a tokenized U.S. Treasury note, marking the first transaction of its kind on a major triparty financing platform.
The process began when Citadel Securities purchased a two-year U.S. Treasury note through BNY on the Tradeweb trading platform.
The bank then recorded a digital representation of the note on its private ledger , allowing settlement to be completed within minutes rather than following the traditional T+1 cycle, which takes one business day.
Citadel Securities subsequently used the tokenized Treasury as collateral in an overnight repo transaction and received cash from the bank in exchange.
BNY Uses Tokenized Assets for Settlement and Financing
The transaction allowed the same digital asset to be used in two financial processes: settling the purchase of the Treasury note and subsequently using it as collateral to obtain financing.
In a repo transaction , an institution obtains cash by selling securities with an agreement to repurchase them later. Under the triparty model, an intermediary manages the collateral and other operational aspects of the transaction .
Carolyn Weinberg , BNY’s Chief Innovation and Market Transformation Officer, said the transaction demonstrated how tokenized assets can be integrated into institutional financial operations.
She explained that using a digital representation of a U.S. Treasury note for both settlement and financing could support a financial system with greater operational availability .
The transaction also substantially expands BNY’s work with tokenized financial instruments .
In January, the bank launched a tokenized deposit service for institutional clients, including Citadel Securities, ICE, and Ripple Prime .
The service creates digital representations of deposits held at BNY, allowing them to be used in collateral and margin transactions.
New Tokenized Deposit Services on the Way
Other major financial institutions are also developing similar systems. JPMorgan launched its JPM Coin deposit token for institutional clients in November 2025.
Additionally, a consortium of U.S. banks, including JPMorgan and Citigroup , is working on a tokenized deposit network that could begin operating in the first half of 2027.
Meanwhile, BNY plans to introduce additional digital cash and tokenized deposit capabilities to facilitate settlement and financing transactions between institutions.
The bank also intends to extend the operating hours of its settlement platforms for Federal Reserve-eligible securities and U.S. triparty transactions.
The expansion is expected to cover European and Asian trading hours starting next year.
