BMO Capital Markets unveils pilot fixed income issuance transaction

The Canada-based investment banking company, BMO Capital Markets, has announced it has unveiled a pilot fixed income issuance transaction which is mirrored on a blockchain platform to work with top pension fund investor Ontario Teachers’ Pension Plan.

The transaction has seen it become the first Canadian dollar fixed income issuance which portrays the viability of blockchain platforms.

It saw the Bank of Montreal as the issuer and Ontario Teachers as the buyer of a CDN$250mn ($191mn) 1-year floating rate Deposit Note.

In order to show how smart contracts and blockchain could be utilised for fixed income markets, the transaction was deemed important to develop its blockchain capability.

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Kelsey Gunderson, Head of Global Trading, BMO Capital Markets, said: “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.”

Audrey Gaspar, Ontario Teachers' Managing Director, Treasury and Integration, said: “Ontario Teachers' is committed to exploring technology and innovations that might improve our ability to serve our members.”

“We are pleased to partner with Bank of Montreal in this pilot blockchain initiative.”