The bank is set to pilot tokenized Treasuries on a private blockchain by the end of the year while enhancing its settlement network to accommodate more global trading hours.
By Francisco Rodrigues|Edited by Jamie Crawley Jul 23, 2026, 8:42 a.m. 1 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on BNY Mellon office (Vidar Nordli-Mathisen/Unsplash)SummaryShow- BNY aims to implement 24/7 settlement for both traditional and tokenized U.S. Treasuries by 2027, following a successful after-hours test involving stablecoin issuers.
- The bank plans to initiate tests of tokenized Treasuries on a private blockchain by year-end and broaden its settlement network to encompass more international trading hours.
- The earlier test utilized stablecoin reserves from Ripple (RLUSD) and OpenEden (USDO), indicating that Treasury transactions can persist post-U.S. market closure.
BNY Mellon, recognized as the largest custody bank globally, is gearing up to facilitate continuous settlement of both conventional and tokenized U.S. Treasuries by 2027 after executing an after-hours trade with reserves from two stablecoin issuers.
The bank intends to test tokenized Treasuries on a private blockchain by the end of the year and will enhance its settlement network to include a broader range of trading hours covering Asia, Europe, and the U.S., based on a letter sent to clients as reported by Bloomberg.
The prior transaction involved Ripple’s RLUSD and OpenEden’s USDO, with Ripple directly participating and BNY’s cash-management unit, Dreyfus, acting on behalf of OpenEden.
Tradeweb executed the transaction after Fedwire Securities ceased processing secondary-market Treasury transfers for the day, as mentioned in the report.
BNY noted that the transaction was settled shortly thereafter via existing cash rails. The securities themselves were not tokenized, but this test demonstrated that Treasury operations could continue associated with stablecoin reserves after the primary U.S. settlement window had closed.
The RLUSD and USDO stablecoins maintain short-dated government debt as reserve assets. Although these tokens are traded continuously, the underlying Treasuries remain bound to weekday settlement schedules.
This situation can lead to delays in reserve adjustments following significant creations, redemptions, or collateral calls.
BNY is already the main custodian for RLUSD’s reserves and offers custody and investment management services for OpenEden’s tokenized Treasury fund.
In January, the bank launched tokenized deposit balances, providing institutional clients with an on-chain representation of commercial bank funds.
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Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.
By CoinDesk Research18 hours agoMarkets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.
Why it matters:
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