BNY, the world’s largest custodian bank, plans to support the settlement of conventional and tokenized US Treasuries around the clock in 2027, after completing an after-hours trade involving the reserves of 2 stablecoin issuers.
The bank will test tokenized government bonds on a private blockchain by the end of the year and will expand its existing settlement network later this year to cover more of the Asian, European and US trading days, 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 cash-management business unit Dreyfus acted for OpenEden.
Tradeweb handled the trade after Fedwire Securities stopped processing secondary market Treasury transfers for the day, according to the report.
BNY said the transaction was settled soon after through existing cash rails. The securities were not tokenized, but the test instead showed that Treasury activity linked to stablecoin reserves could continue after the main US settlement window closed.
RLUSD and USDO hold short-term government debt as reserve assets. Tokens are traded continuously, but the government bonds behind them remain tied to weekday settlement windows.
It may delay reserve adjustments after large creations, redemptions or collaterals.
