Bank of Montreal and Ontario Teachers’ Pension Plan tested a Canadian-dollar debt deal over blockchain, a further step in determining the viability of the new technology in fixed-income markets.
Bank of Montreal sold C$250 million ($190 million) of one-year floating rate deposit notes to the Ontario pension fund and used blockchain technology to mirror the transaction, the Toronto-based lender said Wednesday in a statement. The bank’s BMO Capital Markets unit built a settlement system using blockchain, with the prototype allowing issuers and buyers to view transactions on the distributed ledger system.
