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.
For comments and feedback contact: editorial@rttnews.com
Technology News
April 17, 2026 15:29 ET The ongoing conflict in the Middle East continues to raise concerns for policymakers who worry about the impact of the supply shock and high energy prices on the real economy. Producer price data and various survey results on the housing market were the main news from the U.S. this week. In Europe, industrial production data for the euro area gained attention. GDP figures out of China and the policy move by the Singapore central bank were in focus in Asia.