BNY and Citadel Securities complete tokenized Treasury trade to boost Wall Street funding efficiency

Stock News08:30

According to Woofun AI, Bank of New York Mellon Corp (BNY.US) and Citadel Securities have completed a tokenized U.S. Treasury transaction, marking a concrete step by traditional financial giants in using blockchain technology to accelerate asset transfers.

The trade, reached on Tuesday, directly addresses a core pain point of the traditional settlement system: collateral takes too long to move between different accounts and settlement systems, leaving high-quality assets that could otherwise be used for short-term loans or to support other trading activity idle.

Currently, Wall Street institutions including BlackRock Inc (BLK.US), Franklin Resources Inc (BEN.US) and JPMorgan Chase & Co (JPM.US) are actively building tokenized funds and tokenized securities, seeking to improve asset liquidity by shortening settlement times and automating processes.

Data compiled by Woofun AI shows that the test was designed to verify how tokenized government bonds can move seamlessly from settlement to financing, thereby accelerating collateral reuse and unlocking capital potential.

Dan Dougherty, head of digital assets at Citadel Securities, noted that efficiently mobilizing high-quality collateral is fundamental to the normal functioning of markets, and that reducing delays across the entire trading cycle will significantly improve the operating efficiency of institutional markets.

This technological breakthrough not only solves the problem of idle assets but also provides more agile underlying support for complex multilateral clearing.

Looking ahead, Bank of New York Mellon Corp (BNY.US) plans to expand digital cash and tokenized deposit capabilities and to extend the operating hours of its traditional settlement system for Federal Reserve-recognized securities and U.S. tri-party transactions, with the goal of connecting with European and Asian trading sessions next year.

Caroline Weinberg, Bank of New York Mellon Corp's (BNY.US) chief innovation and market transformation officer, said the move aims to build a more interconnected, efficient and round-the-clock financial system.

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