Bank of Montreal (BMO) has announced a collaboration with CME Group and Google Cloud to introduce new 24/7 tokenised cash capabilities. With this partnership, the bank will become the first to offer CME Group’s tokenised cash solution on Google Cloud Universal Ledger (GCUL).
According to a press release from BMO, the new capabilities will allow institutional clients to “more easily and securely” use CME Group’s permissioned network on GCUL. It builds a bank-anchored, institutional framework that enables clients to convert dollars to a tokenised instrument for use with margined products at CME Group, thus expanding the use cases for tokenised cash.
With global market demand for continuous operations growing, “institutions need infrastructure that can support the 24/7 movement of value for critical functions including margin calls, trading, and settlement,” states BMO. Key features of the new capabilities include an institutional settlement instrument for tokenised cash, traditional commercial bank funds in digital form, and always-on movement of value to enable clients to convert US dollars to tokenised deposits and cash 24/7.
Derek Vernon, head of North American Treasury and Payment Solutions at BMO says that the new capabilities allow BMO to “bring regulated money movement into a modern, programmable environment” as the “global ecosystem for stablecoins and tokenised deposits contiues to expand rapidly”.
