BNY Mellon Targets 24/7 Treasury Settlement

BNY Mellon is working to eliminate weekend delays in Treasury settlement by developing an always-on system that can facilitate cash and bond movements on nights and weekends. The bank has already facilitated an after-hours Treasury transaction and plans to run tokenized-Treasury pilots by the end of 2026, with a target of 24/7 settlement for both conventional and tokenized Treasuries in 2027.

The key to this system is the use of stablecoins like USDC, which can be minted and burned directly from institutional custody. This allows clients to move dollars programmatically without shipping assets to an external exchange or wallet first.

Tradeweb has already executed a real-time on-chain Treasury trade on the Canton Network, settling against tokenized cash (USDCx) with participants including Franklin Templeton and Virtu. BNY's roadmap is hedged across both conventional and tokenized paths, giving clients the option to settle tokenized representations when available while also improving operating windows around conventional holdings.