BNY and Citadel Securities have completed a triparty repurchase agreement using a tokenized U.S. Treasury note — a digital representation of the underlying security — connecting digital settlement with institutional financing in a single workflow. The transaction involved a two-year Treasury note purchased through Tradeweb, recorded on BNY's private digital ledger, and settled within minutes instead of the standard T+1 cycle, in which settlement occurs one business day after the trade. Citadel Securities then used the tokenized security as collateral for overnight financing, receiving cash from BNY.

Tokenized Treasury Moves From Trade to Financing

Citadel Securities purchased the Treasury note through BNY on Tradeweb. After execution, BNY recorded a tokenized representation of the security on its private digital ledger, completing settlement within minutes rather than the standard T+1 cycle.

Following settlement, Citadel Securities pledged the tokenized Treasury in an overnight triparty repo, with BNY providing cash in return. Triparty repo is a widely used short-term funding structure in which a third-party agent manages the collateral between the two sides of the trade. The arrangement allowed the security to move directly from trade settlement into a short-term financing position.

According to BNY's official announcement, the transaction marked the first use of tokenized assets on a major triparty repo platform. It also demonstrated how tokenized securities can serve as collateral within existing institutional market infrastructure. The use of tokenized collateral connects to a wider market: U.S. Treasuries are among the most widely used forms of collateral in the repo market, a core short-term funding channel for financial institutions.

BNY Executives Outline the Collateral Workflow

Carolyn Weinberg, BNY's chief innovation and market transformation officer, said the transaction demonstrated how tokenized assets could support connected settlement and financing workflows.

Brian Ruane, BNY's global head of clearance and collateral management, credit services and corporate trust, said Treasury market infrastructure must keep pace with increasingly continuous activity.

Laide Majiyagbe, BNY's global head of markets, said efficient collateral placement remains important for clients as markets move faster. Dan Doherty, Citadel Securities' digital assets operations lead, said reducing friction across the trade lifecycle could improve market operations.

BNY Plans Extended Settlement Capabilities

BNY plans to introduce additional digital cash and tokenized deposit capabilities for institutional settlement and financing. The company also expects to extend operating hours for the traditional settlement platforms that handle Federal Reserve-eligible securities and U.S. triparty transactions.

Next year, BNY intends to extend those operating hours into European and Asian trading sessions. The company expects tokenization and longer operating hours to develop together as institutions pursue more flexible settlement arrangements.

The transaction used a tokenized representation of an existing Treasury security rather than replacing the underlying asset. It connected trade execution, rapid settlement, and overnight collateral financing within one workflow.