BNY, Citadel Securities test tokenized U.S. Treasuries to speed up Wall Street financing

BNY, the world’s largest custody bank, and trading giant Citadel Securities said Tuesday they had completed a transaction using tokenized U.S. Treasuries, showing how blockchain technology could help Wall Street move assets between trading and financing more quickly. The transfer focused on collateral, a key part of financial markets. Banks and trading firms use U.S. government bonds to secure short-term loans and fund trading activity. Moving those bonds between accounts and settlement systems can take time, tying up assets that could otherwise be put to work. The effort comes as Wall Street explores bringing traditional assets onto blockchains.