BNY, the world’s largest depository bank, plans to support 24-hour settlement of conventional and tokenized U.S. Treasuries in 2027, after completing an after-hours transaction involving the reserves of 2 stablecoin issuers.
The bank will test tokenized Treasuries on a private blockchain by the end of the year and expand its existing settlement network later this year to cover more trading days in Asia, Europe and the United States, according to a letter sent to clients reported by Bloomberg.
The previous transaction involved Ripple’s RLUSD and OpenEden’s USDO, with Ripple participating directly, while BNY’s treasury management business unit, Dreyfus, acted for OpenEden.
Tradeweb handled the transaction after Fedwire Securities stopped processing Treasury transfers in the secondary market for the day, according to the report.
BNY said the transaction was settled shortly after using existing cash rails. The securities were not tokenized, but instead the test showed that Treasury activity related to stablecoin reserves could continue after the main U.S. settlement window closes.
RLUSD and USDO hold short-term government debt as reserve assets. The tokens trade continuously, but the Treasury bonds underlying them remain tied to weekday settlement windows.
This may delay reserve adjustments following significant creations, redemptions or calls of guarantees.
