BNY to offer 24/7 settlement for US Treasuries in 2027
- Tokenization Insight
- 2 days ago
- 2 min read
BNY to offer 24/7 US Treasuries settlement in 2027 as digital assets reshape traditional market infrastructure.
BNY told clients on Wednesday that it had facilitated an after-hours Treasury transaction involving stablecoin issuers earlier this year—an important step towards its ambition of creating an “always-on” Treasury market.
The bank plans to introduce tokenized Treasuries and conduct pilot transactions on its private blockchain by the end of 2026. In 2027, it aims to support round-the-clock settlement for both conventional and tokenized Treasuries.
➡️ Why this matters
Stablecoins and tokenized money market funds are the fastest growing digital asset classes and have become an increasingly important source of demand for U.S. government debt, with more than $315 billion of assets now flowing through these digital-asset structures.
But there is a fundamental mismatch between the two markets:
Digital assets operate 24/7. The traditional Treasury settlement infrastructure does not.
Stablecoins and tokenized MMFs can be minted or redeemed at any time. Yet buying and selling the underlying Treasury assets and settling those transactions remains constrained by conventional market hours.
That creates a liquidity and redemption-management challenge, particularly during nights and weekends when investors can transact onchain but the underlying assets cannot move.
BNY’s recent transaction demonstrates how that gap could be closed.
Executed after the Federal Reserve’s Fedwire Securities Service had closed for the day, the transaction involved Ripple, issuer of the RLUSD stablecoin, and Dreyfus, acting on behalf of OpenEden, issuer of USDO.
➡️ Market Implications
If BNY successfully enables 24/7 Treasury settlement, the implications extend well beyond faster processing. It could:
1️⃣ Improve liquidity management for stablecoin issuers and tokenized funds
2️⃣ Reduce the mismatch between onchain redemptions and offchain asset settlement
3️⃣ Strengthen the redemption and reserve-management profile of digital cash products
In short, it would make stablecoins and tokenized MMFs more attractive for institutional use. And this would unlock more utilities and growth for these assets.
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