Bank of New York Mellon (BNY) completed its first triparty repo transaction with Citadel Securities using a tokenized 2-year U.S. Treasury note. Citadel Securities purchased the Treasury through Tradeweb, with settlement occurring within minutes using BNY’s private digital ledger, instead of the standard T+1 cycle. The tokenized Treasury was then used as collateral in an overnight repurchase agreement with BNY, providing Citadel Securities with liquidity. This operation demonstrates a specific institutional use case for tokenization in financing, without representing a market-wide transformation.
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