BNY and Citadel Securities have completed a triparty repo transaction using a tokenized representation of a U.S. Treasury, a move BNY described as the first reported use of tokenized assets on a major triparty repo platform.
The workflow, announced on October 13, linked purchase, settlement and overnight financing. Citadel Securities bought a two-year U.S. Treasury note through BNY on Tradeweb. BNY then recorded a tokenized representation of the note on its private digital ledger, with settlement completed within minutes instead of the standard T+1 cycle.
After settlement, Citadel Securities used the tokenized Treasury as collateral in an overnight triparty repo, receiving cash financing from BNY. In a triparty repo, collateral is held and administered by a third-party bank while one party obtains cash against securities. BNY acted as both triparty platform operator and cash provider. The size of the trade was not disclosed.
“This transaction demonstrates what becomes possible when tokenized assets are used in institutional workflows,” said Carolyn Weinberg, Chief Innovation & Market Transformation Officer at BNY. “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.”
The transaction follows BNY’s January launch of a tokenized deposit service for institutional clients including Citadel Securities, ICE and Ripple Prime. That offering creates blockchain-based representations of client deposits for uses such as collateral and margin transactions. Other large banks are building similar infrastructure: JPMorgan introduced its JPM Coin deposit token for institutional clients in November 2025, and a consortium of major U.S. banks including JPMorgan and Citigroup plans to launch a tokenized deposit network as early as the first half of 2027, according to a Wall Street Journal report in June. BNY also said it plans to add digital cash and tokenized deposit capabilities for institutional settlement and financing, and expects to extend settlement operating hours for Federal Reserve-eligible securities and U.S. triparty transactions to European and Asian trading hours next year.
