Survey Finds Half of Investment Banks Fund Tokenized Repo Development

A survey of institutional leaders found that half of investment banks surveyed are funding tokenized repo development, with banks using several budget sources for the work.

The survey covered leaders from 16 institutions. It found that 50% of investment banks surveyed fund tokenized repo development, while another 20% of banks use innovation or transformation budgets. Treasury funding and shared models account for the remaining 30%.

In a completed U.S. example, a tokenized Treasury repo deal between BNY Mellon and Citadel used tokenized collateral for overnight financing. Citadel relied on a tokenized Treasury security to back its borrowing, and BNY Mellon supplied the cash through a tri-party structure. The survey results describe funding for development; the earlier deal involved tokenized collateral in a repo transaction.