BNY Mellon plans to support around-the-clock U.S. Treasury settlements by 2027, with a tokenization pilot starting at the end of this year

According to Bloomberg, Bank of New York Mellon is preparing to provide around-the-clock settlement for U.S. Treasury securities in response to the impact of the growth of the digital asset market on traditional financial infrastructure. In a letter to clients, the bank stated that it facilitated after-hours U.S. Treasury trading involving stablecoin issuers earlier this year, with plans to launch tokenized U.S. Treasuries and conduct pilot trading on its private blockchain by the end of 2026, aiming for 24/7 settlement of both traditional and tokenized U.S. Treasuries by 2027.

Earlier this year, the bank facilitated after-hours Treasury trading involving stablecoin issuers—after the close of the Federal Reserve's Fedwire Securities Service, involving RLUSD stablecoin issuer Ripple and USDO stablecoin issuer OpenEden, both of which are backed by short-term U.S. Treasuries. BNY stated that the transaction "demonstrates that Treasury market activity related to the digital asset ecosystem can continue beyond traditional cutoff times."