BNY is set to overhaul the operating hours of the US debt market. The world’s largest custodian bank plans to support 24/7 settlement for US bonds, both conventional and tokenized, starting in 2027. As an initial step, testing for tokenized bonds on a private blockchain network will be executed before the end of 2026.
The inaugural pilot transaction has been completed. Ripple participated directly via its RLUSD stablecoin, while BNY Dreyfus acted on behalf of the entity behind OpenEden’s USDO stablecoin. The process began when Tradeweb took over transaction handling right after the Fedwire Securities system halted all secondary market Treasury transfers for the day. Shortly after, fund settlement was finalized through existing cash rails.
Closing the Market Time Gap
Stablecoin issuers like RLUSD and USDO hold short-term government debt as reserve assets. While their crypto tokens move freely 24/7, the underlying Treasury market remains strictly tied to banking hours. Through its latest pilot, BNY demonstrated that this barrier can be overcome. Treasury operations for stablecoin issuers can now continue even after the primary US settlement window closes.
The securities in this initial trial were not yet fully tokenized. However, the proof of concept is robust enough to eliminate weekend settlement standstills. To meet its 2027 target for full 24/7 operations, the bank is preparing to expand its settlement network’s reach this year to cover trading hours across Asia, Europe, and the United States.
A New Bridge to Digital Finance
BNY’s ties with crypto entities are not new. The institution plays a pivotal role as the primary custodian for RLUSD stablecoin reserves. It serves a similar function for OpenEden, providing custody and investment management services for their tokenized Treasury fund.
Breaking traditional transaction time constraints aligns with BNY’s earlier initiatives this year. In January 2026, the bank rolled out tokenized deposit balance features for institutional clients. If this broader vision succeeds, digital asset players will no longer need to rely on banking hours when moving substantial liquidity.
Reported by CoinDesk.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
