BNY Mellon to Manage OpenEden's Tokenized US Treasury Fund

OpenEden Taps BNY Mellon for Tokenized Treasury Management

Real-world asset (RWA) tokenization platform OpenEden has partnered with The Bank of New York Mellon Corporation (BNY Mellon) to manage and custody the assets underlying its TBILL tokenized US Treasury product.

The partnership, announced Wednesday, brings a major Wall Street institution into the burgeoning market for tokenized Treasuries. OpenEden highlights that TBILL is the first Moody’s “A” rated tokenized US Treasury fund to have its assets managed by a global custodian.

A Moody’s “A” rating signifies an upper-medium-grade asset, indicating low credit risk and a strong capacity to meet financial obligations.

OpenEden founder and CEO Jeremy Ng stated that combining their platform with BNY Mellon’s expertise establishes a new standard of trust within the digital asset landscape.

Growing Demand for Tokenized US Treasury Bills

OpenEden reports increasing demand for TBILL, reflecting growing interest in regulated, on-chain cash management solutions. Launched in 2023, TBILL provides investors blockchain-based access to short-dated US Treasury Bills and overnight reverse repurchase agreements through the TBILL token.

Each TBILL token represents a share of the underlying portfolio of US Treasury Bills and their associated yield.

BNY Mellon’s investment management arm, Dreyfus, will act as sub-manager of the TBILL fund, while BNY Mellon will serve as the primary custodian for the underlying assets, utilizing its existing infrastructure.

Jose Minaya, BNY Mellon’s global head of investments and wealth, sees the bank as a bridge between traditional finance and emerging technology in the digital asset space. He believes this partnership allows BNY Mellon to extend its liquidity management capabilities and aims to cover the entire lifecycle of tokenized assets.

BNY Mellon Expands Digital Asset Footprint

BNY Mellon has been active in the digital asset space since 2022, having launched a digital custody platform for institutional clients' Bitcoin (BTC) and Ether (ETH) holdings. This service facilitates the secure storage of private keys and provides bookkeeping services.

More recently, BNY Mellon partnered with Goldman Sachs on a money market fund project to offer institutional investors access to tokenized money market funds.