BMO Capital Markets, the investment banking subsidiary of Canada's Bank of Montreal, has partnered Canadian pension fund Ontario Teachers' Pension Plan (OTPP) to launch a pilot fixed income issuance transaction on a blockchain platform.
This is claimed to be the first-of-its-kind blockchain pilot to mirror Canadian dollar fixed income issuance by a major Canadian bank, demonstrating the viability of blockchain platforms.
"This is an important first step in developing a fully functional blockchain capability that we think will eventually allow primary and secondary trading of securities," said Kelsey Gunderson, Head of Global Trading, BMO Capital Markets.
For the transaction, Bank of Montreal was the issuer, and OTPP was the buyer of a C$250 million one-year floating rate Deposit Note.
The use of blockchain allows the security issuer and buyer to view the transaction and verify the accuracy of the term sheet information and payment amounts until maturity of the fixed income security.
The system is expected to help in cutting cost related to compliance, financial reporting, security clearing, and settlement of cash transactions.
In mid-April, Bank of Montreal was among a consortium of international banks, which along with IBM Blockchain, successfully conducted a pilot live cross-border transactions involving corporate clients on Batavia, a blockchain-based trade finance platform.
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December 19, 2025 15:10 ET U.S. inflation data and interest rate decisions by major central banks were the highlights of this busy week for economics news flow. Employment data and survey results on the housing markets also gained attention in the U.S. In Europe, the European Central Bank and Bank of England announced their policy decisions and macroeconomic projections.