BNY, the world’s largest custodian bank, plans to support round-the-clock settlement of conventional and tokenized US Treasuries in 2027, after completing an after-hours trade 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 US, according to a letter sent to clients as reported by Bloomberg.
The previous transaction involved Ripple’s RLUSD and OpenEden’s USDO, with Ripple directly participating, while BNY’s cash management business unit Dreyfus acted on OpenEden’s behalf.
Tradeweb handled the trade after Fedwire Securities stopped processing secondary market Treasury transfers during the day, according to the report.
BNY said the transaction was resolved shortly thereafter through existing cash channels. The securities were not tokenized, but the test showed that Treasury activity tied to stablecoin reserves could continue after the main US settlement window closed.
RLUSD and USDO hold short-term government debt as reserve assets. The tokens trade continuously, but the Treasuries backing them remain tied to business day settlement windows.
That can delay reservation adjustments after large builds, refunds, or warranty requests.
