What happened
- Specific facts/numbers: Ledger Insights reported that BNY plans to pilot tokenized Treasuries on its private blockchain by the end of 2026 and offer 24/7 settlement for conventional and tokenized Treasuries in 2027; the article also says BNY supports $24.3 trillion in average daily triparty repo clearance and processes $2.5 trillion in payments each day.
- Institutions involved: BNY is central to the initiative, with Ripple, Dreyfus, OpenEden and Tradeweb named in an after-hours Treasury transaction example; BNY’s own digital-cash announcement also references participants across digital assets and market infrastructure including Circle, ICE, Ripple Prime and others.
- Regulatory/technical context: The reported after-hours Treasury trade was settled using conventional cash processes after Fedwire Securities Service had closed, showing that BNY can complete certain internal-book transfers for counterparties already custodying assets with the bank; separately, BNY says its tokenized-deposit capability runs on a private, permissioned blockchain while client balances remain recorded on traditional systems within existing risk, compliance and control frameworks.
- What to watch next: The main milestones identified are BNY’s planned tokenized-Treasury pilot by end-2026, expansion of traditional settlement rails for Fed-eligible securities starting later in 2026, and a broader 24/7 settlement offering in 2027.
Why it matters
If BNY can extend around-the-clock Treasury settlement, institutions using Treasuries and stablecoin reserve assets may be able to move collateral and cash with less overnight friction and greater liquidity flexibility.
HKMA Relevance
Indirect: Hong Kong regulators and market participants are tracking tokenization, stablecoin reserves and always-on settlement models, and BNY’s approach is relevant as a large global infrastructure provider rather than as an HKMA-regulated domestic initiative.