BNY Mellon, Citadel Complete First Tokenized Treasury Deal on Major Repo Platform

BNY Mellon and Citadel Securities completed the first transaction using a tokenized U.S. Treasury on a major tri-party repo platform, marking a step toward blockchain-based collateral settlement for institutional markets.

Citadel bought a two-year Treasury through BNY Mellon on Tradeweb. A tokenized representation of the security was recorded on BNY Mellon’s private digital ledger, with settlement completed within minutes.

Citadel then used the tokenized Treasury as collateral for overnight tri-party repo financing, while BNY Mellon provided the cash. Tri-party repos use a third party to manage collateral and settlement between borrowers and lenders.

BNY Mellon plans to introduce additional digital cash and tokenized deposit functions to support on-chain settlement and financing. The bank also expects to extend the operating hours of its traditional settlement platform into European and Asian trading sessions next year.