TMX, Bank of Canada and Payments Canada to run blockchain settlement tests

TMX, Bank of Canada and Payments Canada to run blockchain settlement tests

Payments Canada, the Bank of Canada and TMX Group have come together to experiment with an integrated securities and payment settlement platform based on distributed ledger technology.

The collaborative effort marks Phase 3 of the Bank of Canda's Project Jasper initiative, to better understand how DLT could transform the future of payments in Canada. In the first two phases, the project focused on exploring the clearing and settlement of high-value interbank payments using DLT.

The conclusion - that a stand-alone DLT wholesale system is unlikely to match the efficiency and net benefits of a centralised system - has not deterred the central bank from pressing ahead with its deep dive into the technology.

"This experiment continues to push boundaries, so it is exciting to move into a third phase with a broader scope and another partner," says Gerry Gaetz, President and CEO of Payments Canada. "We continue to learn by applying distributed ledger technology to a wider set of functions within our financial system."

Building on previous Jasper work, the next phase of the project will develop a proof of concept for the clearing and settlement of securities using the central bank cash-on-ledger model, says Gaetz.

The process to select a vendor to support the project is already underway. Detailed findings of Phase 3 are anticipated to be published at the Payments Canada Summit in Toronto, May 9-11, 2018.

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