The bank will test tokenized Treasuries on a private blockchain by year-end and expand settlement hours to cover global trading zones.
BNY Mellon will begin testing tokenized U.S. Treasuries on a private blockchain before year-end, aiming for 24/7 settlement of conventional and tokenized bonds by 2027. The move follows a successful after-hours test involving stablecoin issuers Ripple and OpenEden.
The bank plans to extend its settlement network later this year to cover more Asian and European trading hours. The initial test used Ripple’s RLUSD and OpenEden’s USDO, with Tradeweb executing the trade after Fedwire Securities closed for the day.
BNY Mellon, the largest custody bank, seeks to eliminate weekend lags in Treasury trading by integrating blockchain technology and expanding operational hours globally.