BNY and Citadel Securities Complete First Tokenized U.S. Treasury Tri-Party Repo

Published October 14, 2026, 00:50 UTC. Based on BNY's October 13, 2026 press release, "BNY Completes Tokenized U.S. Treasury Triparty Repo Workflow with Citadel Securities," and CoinDesk's October 13, 2026 reporting on the transaction.

BNY, the world's largest custody bank, said October 13 it had completed the first use of tokenized assets on a major tri-party repo platform, running an overnight financing trade with Citadel Securities against a tokenized 2-year U.S. Treasury note. In the workflow, Citadel Securities bought the note through BNY on Tradeweb; BNY recorded a tokenized representation of the security on its private digital ledger and settled the trade within minutes rather than the standard T+1 cycle; and Citadel Securities then pledged the tokenized note as collateral in an overnight tri-party repo, with BNY providing the cash, according to the bank's announcement.

First tokenized collateral on tri-party rails

Tri-party repo is short-term financing in which a third-party bank manages collateral between borrowers and lenders, one of the deepest funding channels in the U.S. financial system. Banks and trading firms pledge government bonds there to secure overnight loans, and bonds stuck moving between settlement systems can leave assets idle instead of backing fresh borrowing. The BNY test shows a tokenized Treasury moving from trade execution into settlement and then into financing in one connected digital workflow, compressing the window where collateral sits in transit, the bank said.

What the two firms said

"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, BNY's chief innovation and market transformation officer, said in the announcement. Brian Ruane, BNY's global head of clearance and collateral management, said the infrastructure supporting liquidity, funding and collateral has to keep pace as Treasury market activity becomes more continuous. On the trading side, Dan Doherty, digital assets operations lead at Citadel Securities, said, "Efficient movement of high-quality collateral is fundamental to well-functioning markets," adding that the test shows how tokenized Treasuries can move from settlement into financing more efficiently.

The $62.6 trillion bank behind the test

BNY describes itself as a global financial services platforms company at the heart of the world's capital markets, with more than 240 years of history. As of June 30, 2026, it oversees $62.6 trillion in assets under custody and/or administration and $2.2 trillion in assets under management, and serves over 90% of Fortune 100 companies and nearly all of the top 100 banks globally, according to the announcement. Its shares trade on the NYSE under the ticker BNY. The effort lands as Wall Street keeps pushing traditional assets onto blockchains: CoinDesk noted BlackRock, Franklin Templeton and JPMorgan have embraced tokenized funds and securities, betting the technology shortens settlement times and makes assets easier to move.

Digital cash and longer hours come next

BNY said it plans to introduce additional digital cash and tokenized deposit capabilities to support on-chain settlement and financing for institutional clients. It also expects to extend operating hours for its traditional settlement platforms for Fed-eligible securities and U.S. tri-party transactions, with a view to covering European and Asian trading hours next year. Tokenization and extended operating hours will evolve together to support 24/7 markets, the bank said, framing the repo test as a step toward a more continuous and connected Treasury market.

This article is news reporting and is not investment advice.

Sources

• BNY, "BNY Completes Tokenized U.S. Treasury Triparty Repo Workflow with Citadel Securities" (October 13, 2026), primary source for the transaction details, the quotes, the first-use claim and the next-step plans
• CoinDesk, "BNY, Citadel Securities test tokenized U.S. Treasuries to speed up Wall Street financing" (October 13, 2026), secondary source for the industry context and the BlackRock, Franklin Templeton and JPMorgan tokenization comparison
• PANews (October 14, 2026), secondary source for the Tradeweb execution detail and the extended-hours plan for traditional settlement platforms