BMO to launch tokenized deposit product with Google and CME

BMO, in collaboration with CME Group and Google Cloud, has announced plans to introduce new 24/7 tokenized deposit and cash capabilities that will allow institutional clients to move value more easily and securely using CME Group's permissioned network on Google Cloud Universal Ledger (GCUL).

Source: BMO press

➡️ Why this matters

BMO is introducing essentially two tokenized cash solutions:

- a tokenized deposit for its customers to move value within the bank 24/7

- a tokenized cash use case for mutual customers with CME 

While tokenized deposits solve for 24/7 value transfers across borders, the tokenized cash product with CME ensures mutual clients can leverage their tokenized deposit at the bank to be used for real-time settlement on CME. This means just in time liquidity as opposed to pre-funding buffer.

While big GSIBs have all invested to have tokenized deposit offerings, there are few external partnerships where their tokenized cash are accepted for settlement in capital market use cases.

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