BMO Capital and Canadian Pension Fund Complete Fixed Income Trade on Blockchain

North American-based financial services provider BMO Capital Markets (BMO), in collaboration with a pension fund, conducted the first pilot that uses Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term to automate fixed income transactions in Canadian dollars.

Thanks to the technology that underpins Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, BMO was able to issue a CDN$250MM 1-year floating rate Deposit Note which included Ontario Teachers fund as the buyer.

In the release announcing the fixed income experiment, BMO said the trial marked an unprecedented scale of institutional collaboration between the financial and technology communities and represents a leap forward in improving the efficiency of trade transactions. Records were shared and checked against each other, rather than a central ledger, to verify the accuracy of the term sheet information and payment amounts until the maturity of the fixed income security.

BMO Capital is building a blockchain-based ecosystem that will facilitate the trading of institutional-grade fixed income products. The technology will ultimately allow users to list, buy, and sell any type of fixed income security.

In addition to making their operations more transparent, the institutions reckon the technology could save them money by cutting out costs in several areas including compliance, financial reporting, security clearing and settlement of cash transactions.

BMO Capital Markets, the investment and corporate banking arm of BMO Financial Group, is comprised of a team of nearly 100 professionals operating in eleven major hubs including London, Toronto, New York, Shanghai, Beijing and Hong Kong.

"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. We understand the potential that blockchain brings to the capital markets and we look forward to continuing to drive innovative solutions to help our clients," said Kelsey Gunderson, Head of Global Trading, BMO Capital Markets.