Overview
- BNY Mellon confirmed in a client letter reported by Bloomberg that it aims to enable continuous settlement of conventional and tokenized U.S. Treasuries by 2027.
- An after‑hours test involving Ripple’s RLUSD and OpenEden’s USDO showed Treasury activity can occur after Fedwire closed, but the securities in that test were not tokenized and the trade settled soon after using existing cash rails.
- The bank plans to begin testing tokenized Treasuries on a private blockchain by year‑end and to expand its settlement network this year to cover more Asian, European and U.S. trading hours.
- Significant operational, technical and likely regulatory work remains because current Fedwire windows constrain when underlying reserve adjustments for regulated stablecoins can be made.
- If successful, round‑the‑clock settlement could cut funding frictions for institutional traders, speed reserve adjustments for stablecoins and change how custody banks and markets manage liquidity.