BNY Mellon and Citadel Securities complete US Treasury tokenization transaction, exploring ways to accelerate Wall Street financing.

On Tuesday, BNY Mellon, the world's largest custodian bank, and trading giant Citadel Securities announced they have completed a tokenized U.S. Treasury bond transaction, designed to demonstrate how blockchain technology can accelerate the transition of assets from trade settlement to financing and improve collateral circulation efficiency. U.S. Treasury bonds are key collateral for banks and trading firms to secure short-term loans and fund trading activities, but under traditional settlement systems, transferring bonds between different accounts and systems takes time, which can lead to temporary lock-up of funds and assets. This transaction, which connects settlement and financing via tokenized Treasuries, is expected to enable institutions to reuse collateral more quickly and unlock liquidity. BNY said it plans to further launch digital cash and tokenized deposit services to support blockchain-based settlement and financing, and also plans to extend the operating hours of its traditional settlement system for Fed-eligible securities and U.S. tri-party repo transactions in 2027 to cover European and Asian trading sessions. As institutions including BlackRock, Franklin Templeton, and JPMorgan Chase continue to explore asset tokenization, traditional financial firms are leveraging blockchain to cut settlement times, automate business processes, and boost asset liquidity.