Bank of Canada tests tokenised bond issuance with major banks

Source

Uk Jin

Summary

The Bank of Canada said it has completed a DLT-based pilot to issue and trade tokenised bonds with major financial institutions.
Export Development Canada issued a US$73 million short-term bond and sold it to some investors, with the bond issued as a token on a blockchain-based ledger.
The trial took place as Canada overhauls its digital-asset regulatory framework, including a push to introduce legislation for Canadian-dollar-backed stablecoins as part of the institutionalisation of digital assets.

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The Bank of Canada has completed a pilot with major commercial banks to issue and trade tokenised bonds.

According to CoinDesk on the 6th (KST), the central bank said it had concluded “Project Samara,” a joint initiative with leading domestic financial institutions to test the issuance of bonds on distributed ledger technology (DLT) as well as the trading and settlement process. The Royal Bank of Canada (RBC) and TD Bank took part.

In the project, Export Development Canada (EDC) issued a short-term bond worth US$73 million and sold it to a group of investors. The bond was issued in token form on a blockchain-based ledger.

The trial was conducted as the Canadian government moves to refine its digital-asset regulatory framework. Canada is in the process of institutionalising digital assets, including pushing to introduce legislation for Canadian-dollar-backed stablecoins (digital assets pegged to fiat currency).