BNY and Citadel Securities Use Tokenized Treasury for Overnight Repo
A tokenized two-year Treasury note settled on BNY’s private digital ledger within minutes before Citadel Securities used it to obtain cash in an overnight repo.
BNY and Citadel Securities used a tokenized U.S. Treasury security in an overnight repurchase transaction, according to The Defiant.
The two-year note completed settlement in minutes through BNY’s private digital ledger. Citadel Securities subsequently used the security to raise cash.
The transaction linked digital-ledger settlement with repo financing, a short-term funding arrangement in which securities are sold with an agreement to buy them back.
Source: The Defiant
