BNY completes first tokenized Treasury repo on major triparty platform

BNY has completed its first triparty repo trade on a major platform using tokenized Treasury collateral. The transaction with Citadel Securities highlighted the potential of digital securities for expediting the funding process although deriving the same benefit for other markets remains more difficult. A two-year Treasury note was purchased by Citadel Securities via BNY on the Tradeweb platform. A tokenized version of this was recorded on BNY’s private ledger, which permitted settlement within minutes instead of T+1. Therefore, Citadel used the token for an overnight triparty repo and obtain cash from BNY.

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