BNY and Citadel Securities have completed what BNY calls the first use of tokenized assets on a major triparty repo platform.
Citadel bought a two-year Treasury note through BNY on Tradeweb. A tokenized version was recorded on BNY's private digital ledger and settled within minutes, rather than on the standard T+1 cycle. Citadel then used it as collateral in an overnight triparty repo, with BNY providing the cash, BNY said in an Oct. 13 press release.
The size of the trade was not disclosed. BNY plans to add digital cash and tokenized deposit capabilities and to extend settlement hours into European and Asian trading times next year.
"This trade is a real example of how tokenization solves for client needs," said Laide Majiyagbe, BNY's global head of markets.