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BNY to test tokenized Treasuries on private blockchain by year-end

BNY plans to extend its settlement network later this year to cover more of Asia, Europe and the U.S. trading days, after an after-hours test using stablecoin reserve tokens.

Reported · Written up by our desk · Market Structure

BNY Mellon plans to move toward 24/7 settlement for both conventional and tokenized U.S. Treasuries, aiming for round-the-clock settlement by 2027, according to CoinDesk, citing a client letter reported by Bloomberg.

The bank will begin testing tokenized Treasuries on a private blockchain by year-end, following a successful after-hours trade that used stablecoin reserves from Ripple’s RLUSD and OpenEden’s USDO.

In the test, the transaction occurred after Fedwire Securities had stopped processing secondary-market Treasury transfers for the day, with Tradeweb handling the trade and BNY’s cash-management business unit, Dreyfus, acting for OpenEden; BNY said it settled shortly afterward through existing cash rails.

CoinDesk also notes that while the Treasuries involved were not tokenized, the exercise showed that Treasury activity tied to stablecoin reserve tokens could continue after the main U.S. settlement window closes, a setup intended to reduce settlement lags tied to weekday market hours.

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