Canada’s Bank of Montreal (TSX: $BMO ) (NYSE: $BMO ) is partnering with Google parent company Alphabet (NASDAQ: $GOOGL ) on a new tokenized cash platform.
Specifically, Bank of Montreal plans to launch tokenized cash capabilities in collaboration with Goggle Cloud and the CME Group (NASDAQ: $CME ).
Bank of Montreal says that it aims to meet rising demand for real‑time payments amid a global shift towards around‑the‑clock trading and tokenized securities.
The tokenization of assets is the process of converting ownership rights of a financial asset such as a stock, bond or cash into a digital token on a blockchain.
Advocates say that tokenized cash enables near-instant settlement, reduces delays, moves capital faster across borders, and supports more efficient financial markets.
Going forward, Bank of Montreal’s clients will be able to convert U.S. dollars into a tokenized instrument for use with derivatives on the CME Group exchange.
BMO said the move is aimed at supporting clients that increasingly require round‑the‑clock infrastructure to facilitate trading activity as financial markets shift to 24/7 operations.
“Clients will be able to move funds continuously when markets demand it, not when banking hours allow it,” said Bank of Montreal in a news release.
The new tokenized cash is expected to be launched in the second half of this year, subject to regulatory approval, added Bank of Montreal.
This is the latest in a series of tokenized products being launched by Bank of Montreal.
The Canadian lender recently said that it is launching tokenized deposits that will allow clients to use the money in their bank accounts in digital form for payments.
