BNY and Citadel complete tokenized Treasury repo

BNY and Citadel Securities completed an overnight repo using a tokenized two-year U.S. Treasury, with the note settling within minutes instead of the standard T+1 cycle. BNY says the Oct. 13 transaction was the first use of tokenized assets on a major triparty repo platform, bringing digital collateral into a financing workflow used by institutional markets. BNY’s announcement says it provided cash against the Treasury.

How did the Treasury move from purchase to repo?

Citadel Securities bought the two-year note through BNY on Tradeweb. BNY recorded a tokenized representation of the security on its private digital ledger, where it settled within minutes. Citadel then used that tokenized Treasury as collateral in an overnight repo, a short-term loan backed by securities.

Bloomberg Law reported the trade took place between 9 and 9:30 a.m. in New York. The firms described it as a way to move a Treasury through settlement and financing in a connected workflow. BNY acted as triparty platform operator and supplied the cash; Citadel Securities used the note as collateral.

What changed for this repo?

The key difference was the settlement speed and form of the collateral. In a standard transaction, the note would settle on the next business day, or T+1. Here, the tokenized representation settled within minutes, then entered the overnight financing leg.

That does not mean the Treasury itself became a cryptocurrency. BNY describes the token as a digital representation of a U.S. Treasury note, recorded on its private ledger. The underlying asset remained a Treasury; the tokenized record moved through the firm’s existing market infrastructure.

For you, the practical point is that tokenization reached beyond issuing or transferring a digital asset: the representation was also used to secure short-term funding. BNY says the transaction shows how tokenized Treasuries can move through trade execution, settlement and financing. The announcement does not give the trade’s dollar value, so the scale of the transaction is not clear.

What is BNY planning next?

BNY says it plans to add digital cash and tokenized deposit capabilities for institutional settlement and financing. It also expects to extend operating hours for its settlement platforms for Fed-eligible securities and U.S. triparty transactions into European and Asian trading hours next year, in 2027.

Those plans are intended to support activity across longer market hours, but the firm has not announced a specific launch date. Watch for BNY’s timing on the extended hours and digital cash capabilities, and whether another tokenized Treasury moves through the same repo workflow.

Source material

• BNY’s announcement — bny.com