BNY and Citadel Securities have used a tokenized two-year US Treasury note as collateral in an overnight triparty repo, BNY said on 13 Oct, and called it the first time tokenized assets have been used on a major triparty repo platform. Citadel Securities bought the note through BNY on Tradeweb. CryptoWatchDesk last covered tokenized securities on 13 Oct, in Federated Hermes’ tokenized fund plan.
The token is not the point; the reuse is. Once the trade was executed, BNY recorded a tokenized representation of the note on its own private ledger and settled it within minutes rather than on the usual next-day cycle. Citadel Securities then used it as collateral in an overnight repo, with BNY providing the cash. That is a financing workflow, not an investment product. Tokenized US Treasury funds on public chains held about $14.91 billion on 13 Oct, according to rwa.xyz; this deal ran on a bank’s private ledger and is not part of that total.
The trade took place between 9:00 and 9:30 a.m. in New York, Bloomberg reported. Neither firm disclosed its size. “Efficient movement of high-quality collateral is fundamental to well-functioning markets,” said Dan Doherty, digital assets operations lead at Citadel Securities. BNY says it oversaw $62.6 trillion of client assets in custody or administration at the end of June.
BNY plans to add digital cash and tokenized deposit capabilities for on-chain settlement and financing, the release says; the basics of how ownership moves on a ledger are in what tokenized securities are. It also expects to extend the operating hours of its traditional settlement platforms for Fed-eligible securities and US triparty repo, with a view to reaching European and Asian trading hours next year.
This article is for information only and is not investment advice.