BNY Mellon, Citadel Complete First Tokenized Treasury Deal on Major Repo Platform
Photo: TokenPost
BNY Mellon and Citadel Securities completed the first transaction using a tokenized U.S. Treasury on a major tri-party repo platform, marking a step toward blockchain-based collateral settlement for institutional markets. Citadel bought a two-year Treasury through BNY Mellon on Tradeweb. A tokenized representation of the security was recorded on BNY Mellon’s private digital ledger, with settlement completed within minutes. Citadel then used the tokenized Treasury as collateral for overnight tri-party repo financing, while BNY Mellon provided the cash. Tri-party repos use a third party to manage collateral and settlement between borrowers and lenders.
Source: TokenPost
