BNY Targets 24/7 US Treasury Settlement by Next Year

BNY, the world’s largest custodian bank, is building a round-the-clock settlement system to eliminate weekend and overnight gaps in US Treasury settlement.

The bank aims to have a system in place by next year that can settle both conventional Treasuries and tokenized Treasuries 24 hours a day, 365 days a year, CoinDesk reported on July 23.

BNY will first test tokenized Treasuries on a private blockchain later this year. It will then expand its existing settlement network across trading hours in Asia, Europe and the US.

The move follows BNY’s recent successful processing of overnight trades using reserves held by two stablecoin issuers. The transactions involved Ripple’s stablecoin RLUSD and OpenEden’s stablecoin USDO.