BNY has completed a triparty repurchase agreement with Citadel Securities using a tokenised representation of a United States Treasury, in what it described as the first use of tokenised assets on a major triparty repo platform.
Citadel Securities bought a two-year US Treasury note through BNY on Tradeweb. BNY then created a tokenised version of the security on its private digital ledger and settled the transaction within minutes, rather than through the standard T+1 settlement cycle.
The tokenised Treasury was subsequently used as collateral in an overnight triparty repo. Citadel Securities received cash from BNY in return, completing a workflow that combined tokenised settlement with financing.
“This transaction demonstrates what becomes possible when tokenized assets are used in institutional workflows,” said Carolyn Weinberg, Chief Innovation & Market Transformation Officer at BNY.
“By using a tokenized representation of a U.S. Treasury across both settlement and financing, we are enabling a more connected, efficient, and always-on financial system.”
Banks expand tokenised infrastructure
The transaction follows BNY’s launch in January of a tokenised deposit service for institutional clients, including Citadel Securities, ICE and Ripple Prime.
The service produces blockchain-based representations of client deposits held at the bank. Those digital representations can be used in activities including collateral and margin transactions.
BNY is among several major banks developing similar systems for institutional financial markets. JPMorgan launched its JPM Coin deposit token for institutional clients in November 2025.
A consortium of major US banks, including JPMorgan and Citigroup, is also planning to introduce a tokenised deposit network as early as the first half of 2027, according to a report by The Wall Street Journal in June.
BNY said it intends to add further digital cash and tokenised deposit functions for institutional settlement and financing.
The bank also plans to extend the operating hours of settlement platforms handling Federal Reserve-eligible securities and US triparty transactions. Expansion into European and Asian trading hours is planned for next year.
