BNY Mellon Plans 24/7 U.S. Treasury Settlement by 2027, with Tokenization Pilot to Launch by Year-End

Huoxing Finance reports, according to Bloomberg, that BNY Mellon is preparing for round-the-clock settlement of U.S. Treasuries to address the impact of digital asset market growth on traditional financial infrastructure. In a letter to clients, the bank stated that earlier this year it facilitated after-hours U.S. Treasury trades involving stablecoin issuers and plans to launch tokenized U.S. Treasuries and conduct pilot transactions on its private blockchain by the end of 2026, with the goal of achieving 7×24-hour settlement for both traditional and tokenized U.S. Treasuries by 2027. Earlier this year, BNY Mellon facilitated after-hours Treasury trades involving stablecoin issuers—after the close of the Federal Reserve’s Fedwire Securities Service—between Ripple, issuer of the RLUSD stablecoin, and OpenEden, issuer of the USDO stablecoin, both of which are backed by short-term U.S. Treasuries. BNY stated that this transaction “demonstrates that Treasury market activity related to the digital asset ecosystem can continue beyond traditional cutoff times.”