BNY, the world’s largest custodian bank, plans to support 24-hour settlement of traditional and tokenized U.S. Treasuries in 2027 after completing after-hours trading using the reserves of two stablecoin issuers.
The bank plans to test tokenized U.S. Treasuries on a private blockchain by the end of the year and expand its existing payments network to cover more trading days in Asia, Europe and the United States later this year, according to a letter sent to customers reported by Bloomberg.
Previous deals involved Ripple $RLUSD OpenEden’s USDO, in which Ripple directly participates, and Dreyfus, BNY’s money management business, represented OpenEden.
The report said Tradeweb handled the trades after Fedwire Securities stopped processing Treasury transfers in the secondary market for the day.
BNY said the transaction was settled through existing cash rails shortly thereafter. Although the securities were not tokenized, the test instead showed that Treasury activities related to stablecoin reserves could continue after the primary US payments window closes.
$RLUSD The USDO holds short-term government bonds as reserve assets. Although the tokens are continuously traded, the US Treasuries behind them are still tied to a weekday settlement window.
This may result in delays in reserve adjustments following large creations, redemptions, or collateral calls.
