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Bank of Canada, Payments Canada, TMX to test blockchain-based payment settlements

BBR Staff Writer Published 20 October 2017

The Bank of Canada, Payments Canada and TMX Group will test an integrated securities and payment settlement platform based on distributed ledger technology (DLT) under the next phase of Project Jasper.

Under the third phase of the project, the partnership will develop a proof of concept for the clearing and settlement of securities using the central bank cash-on-ledger model.

The platform will be tested to discover enhanced speed and efficiency by automating the securities settlement process.

In March 2016, Project Jasper was launched to better understand how DLT could transform the future of payments in Canada.

The project concentrated on exploring the clearing and settlement of high-value interbank payments by using DLT in the first two phases.

The phase 3 study will help Bank of Canada to further research one of several paths identified in previous phases of Jasper­­, helping to settle multiple assets on the same ledger.

TMX Group, along with the Bank of Canada and Payments Canada, is working to explore an integrated securities and payment infrastructure, identify opportunities and potential efficiencies within the end-to-end securities settlement process.

Payments Canada president and CEO Gerry Gaetz said: “This experiment continues to push boundaries, so it is exciting to move into a third phase with a broader scope and another partner.

“We continue to learn by applying distributed ledger technology to a wider set of functions within our financial system.”

 TMX Group innovations and enterprise delivery vice president John Lee said: “It is vital to explore a financial ecosystem that leverages innovative technologies to optimize the business transaction process for all Canadian investors.”

Image: The Bank of Canada building. Photo: courtesy of d.neuman/Wikipedia.