BNY and Citadel Securities Complete Tokenized U.S. Treasury Transaction

BNY and Citadel Securities completed a transaction using tokenized U.S. Treasuries to demonstrate faster movement of assets between trading and financing. The transfer specifically focused on collateral, aiming to reduce the time government bonds are tied up securing short-term loans. BNY expects to extend the operating hours of its traditional settlement systems for U.S. triparty transactions to reach European and Asian trading hours next year. The custody bank plans to introduce additional digital cash and tokenized deposit capabilities to support blockchain-based settlement. "By using a tokenized representation of a U.S. Treasury across both settlement and financing, we are enabling more connected, efficient and always-on financial system." — Carolyn Weinberg.