BNY Mellon and OpenEden have announced a significant partnership to manage the latter’s tokenized US Treasury fund, TBILL. This landmark collaboration marks a major milestone in bridging the gap between traditional finance and blockchain-based solutions.

In this revolutionary deal, BNY Mellon will act as the primary custodian for the underlying assets of the TBILL product. The company’s investment management division, Dreyfus, has been appointed to oversee the day-to-day management of the fund. This development highlights BNY Mellon’s growing involvement in blockchain-based finance.

OpenEden’s decision to collaborate with a global financial institution like BNY Mellon underscores the increasing demand for regulated on-chain cash-management solutions. The partnership aims to provide investors with secure and reliable access to US Treasury Bills via blockchain technology. By leveraging their expertise in traditional finance, OpenEden is poised to capitalize on this emerging trend.

The tokenized TBILL fund launched in 2023 offers a share in a pool of short-dated US Treasury Bills and reverse repurchase agreements. This innovative product allows for 24/7 access and potential real-time settlement, an unparalleled level of liquidity in the traditional market.

BNY Mellon’s involvement in this partnership marks a significant expansion of its role in blockchain-based finance. The company has already ventured into this space by launching a digital custody platform in 2022 to store institutional clients’ Bitcoin and Ethereum holdings. Furthermore, BNY Mellon is actively collaborating with other financial institutions to create tokenized money market funds.

The collaboration between OpenEden and BNY Mellon will provide institutional investors with a secure and regulated means to access US Treasury Bills via blockchain technology.

Source: coincentral.com