Bank of Montreal announced on Tuesday that it plans to introduce tokenized cash capabilities in partnership with CME Group and Google Cloud, as it aims to meet increasing demand for real-time payments amid a global shift toward around-the-clock trading.
Tokenized cash allows for near-instant settlement, reducing delays, freeing up capital quicker, and supporting more efficient, continuous financial market activity.
Derek Vernon, Head, North American Treasury and Payment Solutions, BMO, told investors, “We are excited to work with CME Group and Google Cloud to deliver a truly innovative solution that modernizes capital market efficiency as the industry advances toward more continuous trading and settlement, while laying the groundwork for BMO tokenized deposits that support broader real-world payment and treasury use cases. As the global ecosystem for stablecoins and tokenized deposits continues to expand rapidly, this capability marks significant progress of BMO’s ambition to bring regulated money movement into a modern, programmable environment. Clients will be able to move funds continuously when markets demand it, not when banking hours allow it – reducing funding gaps and operational friction.”
“With the world moving toward 24/7 trading, CME Group is focused on providing the efficiencies our clients need to manage collateral and margin costs,” said Suzanne Sprague, Chief Operating Officer and Global Head of Clearing, CME Group. “Working with BMO and Google Cloud to tokenize cash at CME Clearing will allow firms to meet margin requirements and settlement obligations in real-time, freeing up capital that would otherwise need to wait for traditional banking cycles.”
James Tromans, Managing Director, Web3 and Digital Assets, Google Cloud, said, “Our collaboration with CME Group and BMO demonstrates how Google Cloud’s innovative infrastructure solves the complex challenges in finance and empowers our partners to fundamentally transform their businesses. By providing an enterprise-ready, easy-to-integrate foundation through Google Cloud Universal Ledger, we are enabling BMO and CME Group to offer unparalleled capital efficiency and are helping to significantly reduce operational friction for global markets.”
BMO said the move is aimed at supporting clients who increasingly need around-the-clock infrastructure to handle margin calls and manage trading and settlement activities as global markets shift toward 24/7 operations.
By CEO NA Editorial Staff
