🔍 Wall Street’s largest custodian has moved Treasuries onto its own private blockchain
On October 13, BNY (the Bank of New York Mellon) and Citadel Securities completed a tri-party repo transaction using tokenized U.S. Treasuries. According to the official announcement, it was the first time tokenized assets had been used on a mainstream tri-party repo platform.
The process is straightforward. Citadel bought a two-year U.S. Treasury through BNY on Tradeweb. A tokenized certificate for the Treasury was recorded on BNY’s own private ledger, and the transaction settled in minutes—not on T+1. Citadel then used it as collateral for an overnight tri-party repo with BNY, which provided the cash.
The scale is what makes this interesting. BNY is the world’s largest custodian. As of June 30, it held $62.6 trillion in assets under custody, up 12.2% year over year, and managed $2.23 trillion in assets. According to a client letter cited by Ledger Insights, BNY is the leading tri-party agent in the U.S. repo market, clearing an average of about $24.3 trillion a day and processing $2.5 trillion in payments daily.
It’s focused on extending the hours. BNY says it plans to extend the operating hours of its traditional settlement system into the European and Asian trading sessions, with the change due next year. Before the end of this year, it will first pilot tokenized Treasuries on its private blockchain. By 2027, both traditional and tokenized Treasuries will be able to settle 24/7.
One detail is easy to miss: this process only works when both parties custody their assets with BNY. Settlement takes place on BNY’s own ledger, using commercial bank money. The reason transactions can still move after Fedwire closes is that BNY sits in the middle.
For a sense of scale: the entire tokenized RWA market is worth about $34 billion, while BNY alone has $62.6 trillion in assets under custody. That’s a difference of four orders of magnitude. BNY also custodies reserves for USDC, RLUSD, and USDO.
As I write this, BTC is quoted between $83,274 and $83,354 across four sources, up about 1.6% over 24 hours. ETH is at $2,501.
Tokenization has been talked about for years. What’s actually taking off is making sure collateral doesn’t sit idle. Whoever holds the collateral sets the rules.
$BTC $ETH
#中本聪国际社区Baoluo币商资本 #Bitcoin #RWA
On October 13, BNY (the Bank of New York Mellon) and Citadel Securities completed a tri-party repo transaction using tokenized U.S. Treasuries. According to the official announcement, it was the first time tokenized assets had been used on a mainstream tri-party repo platform.
The process is straightforward. Citadel bought a two-year U.S. Treasury through BNY on Tradeweb. A tokenized certificate for the Treasury was recorded on BNY’s own private ledger, and the transaction settled in minutes—not on T+1. Citadel then used it as collateral for an overnight tri-party repo with BNY, which provided the cash.
The scale is what makes this interesting. BNY is the world’s largest custodian. As of June 30, it held $62.6 trillion in assets under custody, up 12.2% year over year, and managed $2.23 trillion in assets. According to a client letter cited by Ledger Insights, BNY is the leading tri-party agent in the U.S. repo market, clearing an average of about $24.3 trillion a day and processing $2.5 trillion in payments daily.
It’s focused on extending the hours. BNY says it plans to extend the operating hours of its traditional settlement system into the European and Asian trading sessions, with the change due next year. Before the end of this year, it will first pilot tokenized Treasuries on its private blockchain. By 2027, both traditional and tokenized Treasuries will be able to settle 24/7.
One detail is easy to miss: this process only works when both parties custody their assets with BNY. Settlement takes place on BNY’s own ledger, using commercial bank money. The reason transactions can still move after Fedwire closes is that BNY sits in the middle.
For a sense of scale: the entire tokenized RWA market is worth about $34 billion, while BNY alone has $62.6 trillion in assets under custody. That’s a difference of four orders of magnitude. BNY also custodies reserves for USDC, RLUSD, and USDO.
As I write this, BTC is quoted between $83,274 and $83,354 across four sources, up about 1.6% over 24 hours. ETH is at $2,501.
Tokenization has been talked about for years. What’s actually taking off is making sure collateral doesn’t sit idle. Whoever holds the collateral sets the rules.
$BTC $ETH
#中本聪国际社区Baoluo币商资本 #Bitcoin #RWA