Bank of New York (BNY) is working to eliminate the weekend lag in U.S. Treasuries by utilizing blockchain technology. The bank plans to begin testing tokenized Treasuries on a private blockchain by the end of the year.
This move aims to expand BNY's settlement network to cover more international trading hours. According to reporting from CoinDesk, the goal is to provide 24/7 financial rails, reducing the delay currently experienced over weekends.
By tokenizing U.S. Treasuries and using a private blockchain for settlement, BNY hopes to create a more efficient and continuous trading environment. This development is part of the bank's efforts to improve its services and stay competitive in the financial industry.