According to a customer letter released by Bank of New York Mellon (BNY Mellon) on July 23, the bank completed post-trade U.S. Treasury transactions with a stablecoin issuer earlier this year and plans to issue tokenized U.S. Treasuries by the end of 2026 for pilot trading on its private blockchain. According to a Bloomberg report, BNY Mellon plans to fully support “always-on” round-the-clock settlement for both traditional Treasuries and tokenized Treasuries in 2027.
BNY Mellon’s Tokenized U.S. Treasuries Roadmap
Based on BNY Mellon’s customer letter from Wednesday and a Bloomberg report, the key timeline for BNY Mellon’s tokenized U.S. Treasuries plan is as follows:
Earlier this year: BNY Mellon has completed post-trade U.S. Treasury transactions with a stablecoin issuer (disclosed in the Wednesday customer letter)
A few weeks ago: BNY Mellon announced that it would become a primary reserve custodian for RLUSD
End of 2026: Plans to issue tokenized U.S. Treasuries and conduct pilot trading on a private blockchain (BNY Mellon plan)
In 2027: Plans to fully support “always-on” round-the-clock settlement for both traditional Treasuries and tokenized Treasuries (Bloomberg report)
Collaboration Structure Between BNY Mellon and RLUSD
According to statements from Ripple and BNY Mellon, in the RLUSD collaboration, BNY Mellon takes on the following roles: ensuring the safe custody of RLUSD reserves; providing trade banking solutions for RLUSD operations; and supplying infrastructure to connect stablecoins with the traditional financial system.
RLUSD is issued under the trust company charter of the New York State Department of Financial Services; the Abu Dhabi Financial Services Regulatory Authority (FSRA) separately approved RLUSD as a fiat-referenced token. Ripple said that RLUSD is aimed at businesses rather than retail payments, focusing on meeting regulatory requirements, increasing transparency, and improving usability for financial institutions.
FAQ
When does BNY Mellon plan to complete round-the-clock settlement for tokenized U.S. Treasuries?
According to BNY Mellon’s Wednesday customer letter, the tokenized U.S. Treasuries pilot trading will be conducted on a private blockchain before the end of 2026. The Bloomberg report also said that BNY Mellon plans to fully support 24/7 “always-on” settlement for both traditional and tokenized Treasuries in 2027.
What role does BNY Mellon play in RLUSD stablecoins?
According to statements from Ripple and BNY Mellon, BNY Mellon is the primary reserve custodian for RLUSD, responsible for ensuring safe custody of reserves, providing trade banking solutions, and supplying infrastructure to connect stablecoins to the traditional financial system.
Which regulators approved RLUSD?
According to the report, RLUSD is issued under the New York State Department of Financial Services trust company charter, and the Abu Dhabi Financial Services Regulatory Authority (FSRA) has approved RLUSD as a fiat-referenced token.
