Wall Street Goes On-Chain: BNY and Citadel Securities Use a Tokenized Treasury as Repo Collateral

By Kevin · 2026-10-14 · News

Oct. 14 (CandyPulse) — Two of the biggest names in finance have just shown how tokenization could speed up one of Wall Street's busiest markets. BNY and Citadel Securities said on Oct. 13 that they completed a test using a tokenized U.S. Treasury note as collateral, settling in minutes instead of a day.

It may sound technical, but the idea is simple: move high-quality assets faster, and they can be put to work faster.

Key takeaways

Citadel Securities 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, versus the usual T+1
The tokenized note was then pledged as collateral in an overnight triparty repo, with BNY providing cash
BNY called it the first use of tokenized assets on a major triparty repo platform
The transaction size was not disclosed

How the test worked

The trade happened in two steps.

First, Citadel Securities bought a two-year Treasury note through BNY on the Tradeweb platform. A tokenized representation of that note was recorded on BNY's private digital ledger and settled within minutes. Normal Treasury trades settle on a T+1 cycle, meaning the next business day.

Second, Citadel Securities pledged the tokenized note as collateral in an overnight triparty repo, a common short-term borrowing deal. BNY provided cash in return.

Step	Traditional process	In this test
Buying the Treasury	Settles next business day (T+1)	Settled within minutes
Recording ownership	Traditional systems	BNY private digital ledger
Using it as collateral	After settlement completes	Pledged straight into an overnight triparty repo

Why it matters

Repo markets are where big institutions borrow and lend cash every day against safe assets like Treasuries. The faster collateral can move, the more efficiently that money can flow.

By showing a tokenized Treasury can go from purchase to collateral so quickly, BNY and Citadel Securities are making a practical case for tokenization, not just a theoretical one. It is also part of a wider trend of bringing real-world assets on-chain.

What is still unclear

The test leaves some open questions:

Size: the transaction amount was not disclosed
Interoperability: it is not yet clear whether other custodians or triparty platforms can recognize the same tokenized note
Cash: money is still split between the digital and traditional sides of the deal

What's next

BNY expects to extend the operating hours of its traditional settlement systems for Federal Reserve-eligible securities and U.S. triparty transactions, with the aim of reaching European and Asian trading hours next year.

For tokenization, this is another sign that the biggest players are moving from talking about it to actually using it.

Disclaimer: This article is for information only and is not financial advice. Crypto assets are volatile and can lose value. Always do your own research before making any investment decision.