The Teachers' Pension Plan of the Bank of Montreal and Ontario has tested an agreement on Canadian debt with dollars using blockchain, reports Bloomberg on August 15th.
In the pilot transaction, the bank is said to have sold $ 250 million Canadian dollars (about $ 190 million) of one-year floating-rate deposit notes to the teachers' pension fund, implementing blockchain technology to reflect the transaction. This is the first use of technology for a "fixed income" in Canadian dollars.
Bloomberg notes that the BMO Capital Markets unit of the Bank of Montreal has built a blockchain-based settlement system prototype, which allows issuers and buyers to track transactions using the technology. Reportedly, the bank aims to leverage technology to ensure significant cost savings through compliance, financial reporting and clearing and settlement of legal transactions.
Kelsey Gunderson, head of global trading at BMO Capital Markets said:
"This is an important first step in developing a fully functional blockchain capacity that we believe will allow primary and secondary stock trading."  This year saw another bullish citizen first for a similar initiative on blockchain, this time for the US dollar. In April, JPMorgan Chase, the National Bank of Canada and others used the Quorum blockchain platform to reflect the $ 150 million offer of the Canadian bank "on the same day as a one-year floating yankee certificate of deposit . "