BNY and Citadel Securities Finish Treasury Repo Using Tokenized Assets on Triparty Network

BNY announced on Tuesday that it successfully executed a triparty repo process alongside Citadel Securities utilizing a digital token version of a U.S. Treasury, representing the initial application of tokenized assets on a primary triparty repo system.

As outlined in a statement from the financial institution, Citadel Securities acquired a 2-year U.S. Treasury security via BNY on Tradeweb. BNY logged a digital tokenized equivalent of the security on its proprietary blockchain network, achieving settlement in minutes rather than adhering to the conventional T+1 settlement schedule. Citadel subsequently deployed the tokenized Treasury as security for an overnight triparty repo, obtaining cash from BNY in exchange.

“This transaction demonstrates what becomes possible when tokenized assets are used in institutional workflows,” Carolyn Weinberg, Chief Innovation & Market Transformation Officer at BNY, said. “By using a tokenized representation of a U.S. Treasury across both settlement and financing, we are enabling a more connected, efficient, and always-on financial system.”

Broader industry push

This milestone arrives after BNY rolled out a tokenized deposit service in January aimed at enterprise clients such as Citadel Securities, ICE, and Ripple Prime. The offering generates distributed-ledger versions of customer deposits maintained at the institution for applications including collateral and margin management.

Additional major financial institutions are actively developing comparable architectures. JPMorgan debuted its JPM Coin deposit token for corporate clients in November 2025, while a group of prominent U.S. banks, featuring JPMorgan and Citigroup, intends to roll out a tokenized deposit network as soon as the first half of 2027, according to a June report by The Wall Street Journal.

At the same time, BNY revealed intentions to launch further digital currency and tokenized deposit features supporting institutional clearance and borrowing. The institution likewise anticipates broadening the operational hours for settlement networks managing Federal Reserve-qualified instruments and U.S. triparty operations, with subsequent scaling into European and Asian market hours slated for the following year.