BNY Mellon Strikes OpenEden Deal to Custody Game-Changing Tokenized US Treasury Fund TBILL

Wall Street meets blockchain—again. BNY Mellon just inked a custody deal for OpenEden's TBILL, a tokenized US Treasury fund that could finally bridge TradFi and DeFi. Because nothing says 'innovation' like repackaging T-bills as digital assets.

The 234-year-old bank isn't exactly known for crypto moves, but custodying tokenized treasuries? That's the kind of 'disruption' even your grandfather's broker can get behind. TBILL tokens represent direct exposure to short-term government debt—now with blockchain's 24/7 settlement perks.

OpenEden's play taps into the $1.7T tokenized RWA market that's eating traditional finance's lunch. And BNY? They get to say they're 'modernizing finance' while basically doing what they've always done—holding assets for a fee. Genius.

TLDR

• OpenEden partners with BNY Mellon to manage its tokenized US Treasury fund TBILL.

• TBILL is the first Moody’s “A”-rated tokenized US Treasury fund managed by a custodian.

• BNY Mellon’s Dreyfus unit will serve as sub-manager for the TBILL product.

• The collaboration signals BNY Mellon’s deeper involvement in blockchain-based finance.

OpenEden, a real-world asset tokenization platform, has announced a significant partnership with BNY Mellon to manage and custody the assets backing its tokenized US Treasury product, TBILL. The collaboration aims to combine traditional financial expertise with blockchain technology to offer investors a secure and regulated access point to US Treasurys via blockchain.

The TBILL product, launched in 2023, provides a tokenized share in a pool of short-dated US Treasury Bills and reverse repurchase agreements. OpenEden’s decision to bring BNY Mellon into the fold signals the increasing demand for blockchain-based access to traditional assets like US Treasurys.

BNY Mellon’s Role in Custody and Asset Management

BNY Mellon, one of the world’s largest and oldest financial institutions, will serve as the primary custodian for the underlying assets of the TBILL product. The bank’s investment management division, Dreyfus, will act as the sub-manager of the fund, overseeing the day-to-day management of the assets.

This partnership marks a first for the industry, as TBILL becomes the first tokenized US Treasury fund to be managed by a global custodian with a Moody’s “A” rating. A Moody’s “A” rating denotes that the product is of upper-medium-grade quality, indicating low credit risk and the capacity to meet financial obligations, which aligns with traditional finance standards.

Jose Minaya, BNY Mellon’s Global Head of Investments and Wealth, stated that the bank views this collaboration as a way to bridge the gap between traditional finance and emerging digital assets. By leveraging their DEEP fiduciary expertise, BNY Mellon hopes to create new standards of trust in blockchain-based finance.

Increasing Demand for Tokenized US Treasury

OpenEden has experienced growing demand for its TBILL product, reflecting the broader interest in regulated on-chain cash-management solutions.

Investors are increasingly seeking blockchain-based products to access secure, low-risk assets like US Treasurys while benefiting from the liquidity and efficiency offered by blockchain technology.

The tokenization of these assets allows for 24/7 access and the potential for real-time settlement, which is not available in traditional finance. The partnership with BNY Mellon underscores the importance of integrating traditional financial services with new technologies to meet the needs of institutional investors.

BNY Mellon Expanding Role in Blockchain Finance

BNY Mellon’s involvement in the digital asset space has been expanding since it launched a digital custody platform in 2022 to store institutional clients’ Bitcoin and Ether holdings. This latest partnership with OpenEden marks a further deepening of the bank’s role in blockchain-based finance.

In addition to the TBILL product, BNY Mellon has been actively collaborating with other financial institutions, such as Goldman Sachs, to offer tokenized money market funds.

These collaborations aim to unlock new market opportunities and provide institutional investors with access to products that leverage the advantages of blockchain technology, such as real-time settlement and improved liquidity.