New Mellon (BNY.US) Castle Securities Tokenized Treasury Bond Test: Reshaping Wall Street Funding Efficiency

According to Woofun AI, New York Mellon (BNY.US) and Castle Securities have completed a tokenized US Treasury bond transaction. This move marks substantial progress by traditional financial giants in using blockchain technology to accelerate asset transfers.

The deal reached on Tuesday directly hit the core pain point of the traditional settlement system: it took too long to transfer collateral between different accounts and settlement systems, causing high-quality assets that could be used for short-term loans or to support other trading activities to be ineffectively used. Currently, Wall Street institutions including BLK.US (BLK.US), Franklin Templeton (BEN.US), and JPMorgan Chase (JPM.US) are actively deploying tokenized funds and tokenized securities in an attempt to optimize asset liquidity by shortening settlement times and automating processes.

According to data compiled by Woofun AI, the test aims to verify how tokenized government bonds are seamlessly connected from settlement to financing, thereby speeding up collateral reuse and unlocking capital potential.

Dan Doherty, head of the digital asset business at Castle Securities, pointed out that efficiently mobilizing high-quality collateral is the foundation for the normal operation of the market, and reducing delays throughout the transaction cycle will significantly improve the operational efficiency of the institutional market. This technological breakthrough not only solved the problem of idle assets, but also provided more agile underlying support for more complex multilateral clearing.

Looking ahead, New York Mellon (BNY.US) plans to expand digital cash and tokenized deposit functions and extend the operating period of traditional settlement systems for Fed-approved securities and US tripartite transactions. The goal is to connect with European and Asian trading sessions next year. Caroline Weinberg, chief innovation and market transformation officer at New York Mellon (BNY.US), said the move was aimed at building a more connected, efficient, and all-weather financial system.