BNY and Citadel Securities Test Tokenized U.S. Treasuries

BNY Mellon and Citadel Securities have completed a transaction using tokenized U.S. Treasuries, testing how blockchain technology can accelerate the movement of collateral in Wall Street financing.

The test, announced on October 13, 2026, demonstrated how government bonds represented as digital tokens could be moved more efficiently from settlement into financing arrangements. This process targets a significant bottleneck where firms use bonds as collateral to secure short-term loans and fund trading activities.

The initiative is part of a broader push by major financial institutions to modernize market infrastructure. BNY Mellon, the world’s largest custody bank, stated it plans to expand its digital cash services and extend traditional settlement hours as it works toward enabling around-the-clock markets.

The transaction highlights the growing institutional adoption of blockchain for traditional finance, moving beyond cryptocurrency trading into core areas like securities settlement and collateral management.