Repo Market

BNY completed the first tokenized Treasury repo on a major triparty platform, settling a two-year note in minutes instead of the standard T+1 cycle and then using it as overnight collateral, a step toward continuous Treasury market infrastructure that matters to institutions seeking faster access to liquidity at scale.

• BNY and Citadel Securities executed a tokenized 2-year Treasury repo on Tradeweb’s triparty platform, settling near-instantly on BNY’s private ledger.
• Broadridge processed $7.5 trillion in tokenized repo in September 2026, averaging $359 billion daily, showing the market already operates at institutional scale.
• BNY plans to extend Fed-eligible settlement and triparty operations to European and Asian hours in 2027, requiring interoperable digital cash and collateral systems.

• Minutes Settlement speed for tokenized Treasury versus standard T+1 cycle
• $7.5T Broadridge tokenized repo volume processed in September 2026
• €14.9T Outstanding European repo agreements in first half 2026, indicating market scale

BNY completed a triparty repo workflow with Citadel Securities using a tokenized U.S. Treasury, marking the first use of tokenized assets on a major triparty repo platform. Citadel purchased a 2-year Treasury note through BNY on Tradeweb, which was then recorded as a tokenized security on BNY’s private digital ledger and settled within minutes instead of the standard T+1 settlement cycle. After settlement, Citadel used the tokenized Treasury as collateral in an overnight repo with BNY providing cash in return. The transaction demonstrates how tokenized securities can flow through institutional workflows from execution through settlement into short-term financing, all within a single digital infrastructure.

BNY’s triparty milestone arrives after Broadridge scales tokenized repo to $7.5 trillion

The significance of BNY’s transaction lies not in tokenized repo itself, which already operates at institutional scale, but in its execution on a major triparty platform used across the industry. Broadridge disclosed that its Distributed Ledger Repo processed $7.5 trillion in September 2026, averaging $359 billion in daily transactions. That volume dwarfs any single bilateral repo; Broadridge operates its own distributed ledger infrastructure independent of traditional settlement systems. BNY’s choice to tokenize collateral on Tradeweb’s triparty platform, the mechanism through which major dealers and buy-side firms access centralized repo markets, signals institutional acceptance of digital settlement in the plumbing that connects the entire Treasury ecosystem.

The global repo market handles over $10 trillion in daily volume, making settlement delays a material friction cost. In traditional transactions, T+1 and T+2 settlement cycles are standard, and margin adjustments typically occur in batches rather than continuously. Tokenized settlement can move collateral faster across time zones and compress the idle periods between trade execution and financing, but only if institutions adopt the rails. BNY’s participation on a triparty platform validates that digital settlement can integrate with existing market structure rather than replace it.

Digital cash and extended hours required to unlock 24/7 collateral mobility

BNY’s roadmap depends on solving a problem the transaction itself did not address: how to settle tokenized collateral without tokenized money. Carolyn Weinberg, Chief Innovation and Market Transformation Officer at BNY, stated that the transaction demonstrated “what becomes possible when tokenized assets are used in institutional workflows.

By using a tokenized representation of a U.S. Treasury across both settlement and financing, we are enabling more connected, efficient and always-on financial system.” BNY already launched tokenized deposits in January 2026, and the bank plans to introduce additional digital cash capabilities designed to support on-chain settlement and financing for institutional clients.

Efficient movement of high-quality collateral is fundamental to well-functioning markets. We’re pleased to work with BNY on a practical use case that shows how tokenized U.S. Treasuries can move from settlement into financing more efficiently.

Dan Doherty, Digital Assets Operations Lead, Citadel Securities

The next phase requires extending operating hours for Fed-eligible settlement and U.S. triparty transactions into European and Asian trading hours in 2027. According to ICMA, approximately €14.9 trillion in outstanding European repo agreements existed in the first half of 2026, indicating the scale of collateral that could move across borders if settlement systems operated around the clock. Extended hours combined with digital collateral and cash settlement could enable institutions to manage liquidity continuously rather than against rigid daily cutoffs.

Fragmented ledgers and cross-border liquidity remain unresolved

BNY’s private ledger and Broadridge’s distributed ledger infrastructure are separate systems. In July 2026, DTCC tokenized DTC-held securities on Besu and Canton blockchains, with more than 30 firms participating and a Treasury repo delivery-versus-payment transaction tested; DTCC’s tokenization service was scheduled to launch in October.

These parallel networks create a fragmentation risk: collateral locked on one ledger cannot freely move to another without intermediaries, limiting the claimed benefits of tokenization for cross-border and 24/7 settlement.

The BIS has warned that digital settlement infrastructure must preserve trust in money and legal finality, a requirement that adds compliance and governance layers to multi-ledger environments. Institutions also face cross-ledger risks and fragmented liquidity pools if different platforms do not interoperate seamlessly.

The unresolved question is whether these networks can exchange collateral safely and at scale without reducing the speed advantage that tokenization promises.

The CCS read. We see BNY and Broadridge executing institutional tokenization at different architectural choices: BNY integrates with existing triparty rails and extends deposit settlement, while Broadridge scales its own ledger. Both strategies work at billions daily, but custody and collateral remain segregated. For institutional crypto investors seeking tokenized Treasury exposure or on-chain repo funding, the real test is whether these platforms will interoperate by 2027 or remain siloed funding sources.

BNY expects to extend Fed-eligible settlement operating hours into European and Asian trading zones in 2027, contingent on integrating digital cash settlement with traditional infrastructure, a deadline and technical dependency that will determine whether tokenized collateral can genuinely operate around the clock or remains confined to U.S. trading hours.