TBAC highlighted DLT and tokenization as possible enablers of intraday repo in the U.S. Treasury market, but left open whether enough cash lenders would participate.

What happened

• Specific facts/numbers: Treasury’s October 2024 TBAC digital-assets charge asked members to summarize existing blockchain and tokenization efforts for Treasury-market applications, while a later TBAC intraday-repo charge explicitly asked how dependent broader intraday repo use might be on blockchain and tokenization technology; no adoption target or launch date was identified in the materials reviewed.
• Institutions involved: The U.S. Department of the Treasury and its Treasury Borrowing Advisory Committee were central, with the committee drawing members from banks, broker-dealers, asset managers, hedge funds and insurers.
• Regulatory/technical context: Treasury says TBAC is a federal advisory committee governed by the Federal Advisory Committee Act and the Government Securities Act. In the October 29, 2024 meeting minutes, Treasury described tokenization as representing ownership of a Treasury security using blockchain or distributed-ledger technology, framing the debate around market-structure benefits and costs.
• What to watch next: Watch future TBAC quarterly refunding materials and meeting minutes for any clearer Treasury stance on tokenized Treasuries or intraday repo adoption; no concrete next milestone was identified in the materials reviewed.