CumberlandThe bank will begin testing tokenized Treasuries on a private blockchain by year-end and expand its settlement network to cover more international trading hours.
24/7 financial rails: How BNY plans to eliminate the weekend lag in U.S. Treasuries
The bank will begin testing tokenized Treasuries on a private blockchain by year-end and expand its settlement network to cover more international trading hours.
BNY plans to enable 24/7 settlement for conventional and tokenized U.S. Treasuries by 2027, following a successful after-hours test with stablecoin issuers. The bank will begin testing tokenized Treasuries on a private blockchain by year-end and expand its settlement network to cover more international trading hours. The test used stablecoin reserves from Ripple (RLUSD) and OpenEden (USDO), demonstrating that Treasury activity can continue after U.S. market hours close.
BNY, the world’s largest custody bank, plans to support round-the-clock settlement of conventional and tokenized U.S. Treasuries in 2027, after completing an after-hours trade involving the reserves of 2 stablecoin issuers.
The bank will test tokenized Treasuries on a private blockchain by the end of the year and will extend its existing settlement network later this year to cover more of the Asian, European and U.S. trading days, according to a letter sent to clients reported by Bloomberg.
The earlier transaction involved Ripple’s RLUSD and OpenEden’s USDO with Ripple participating directly, while BNY’s cash-management business unit Dreyfus acted for OpenEden.
Tradeweb handled the trade after Fedwire Securities had stopped processing secondary-market Treasury transfers for the day, according to the report.
BNY said the transaction settled shortly afterward through existing cash rails. The securities were not tokenized, but the test instead showed that Treasury activity tied to stablecoin reserves could continue after the main U.S. settlement window closed.
RLUSD and USDO hold short-dated government debt as reserve assets. The tokens trade continuously, but the Treasuries behind them remain tied to weekday settlement windows.
That can delay reserve adjustments following large creations, redemptions or collateral calls.
BNY is already the primary custodian for RLUSD’s reserves and provides custody and investment management for OpenEden’s tokenized Treasury fund.
The bank introduced tokenized deposit balances in January, giving institutional clients an on-chain representation of commercial-bank money.
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Crypto Flows, Share and the Selective Rotation
Crypto Flows, Share and the Selective Rotation
Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.
Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.
Why it matters:
Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.
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