Citadel Securities and BNY completed a tri-party repo transaction using a tokenized two-year US Treasury, moving the asset from settlement into overnight financing. Citadel purchased the Treasury through BNY on Tradeweb, where its digital representation was recorded on BNY's private ledger and settled within minutes rather than the standard T+1 cycle before being used as collateral for cash provided by BNY. The firms said the transaction demonstrates how tokenized government bonds could reduce delays in collateral movement, allowing trading firms to reuse high-quality assets sooner and potentially release cash for other activity. BNY plans to add digital cash and tokenized deposit capabilities for blockchain-based settlement and financing, while extending traditional settlement-system hours for Federal Reserve-eligible securities and US triparty transactions into European and Asian trading hours next year. The transaction is distinct from Citadel's July 15, 2026 DTC Tokenization Service transaction on the Canton Network, which involved tokenized Treasuries used as CME trading collateral.