TLDR
- BMO will offer tokenized cash and deposits for institutional clients
- CME network enables real-time settlement and collateral movement
- Service runs 24/7 without traditional banking hour limits
- Google Cloud provides infrastructure through Universal Ledger
- Launch expected in second half of 2026 pending approval
Bank of Montreal plans to launch tokenized cash and deposit services for institutional clients. The service will run through CME Group’s network. It will allow clients to move funds without time limits.
The bank said the system supports real-time payments and settlement needs. Clients can transfer value at any hour. This removes delays caused by traditional banking schedules.
Derek Vernon, Head of Treasury and Payment Solutions, spoke about the rollout. He said clients can move funds when markets require action. He added this reduces funding gaps and improves efficiency.
The service will first target mutual clients of BMO and CME Group. It will expand to more users after regulatory approval. The launch is expected in the second half of 2026.
CME and Google Cloud support real-time settlement system
CME Group will provide the network for tokenized cash operations. The system is built for high-value and real-time settlement. It supports margin payments and collateral transfers.
Suzanne Sprague of CME said the platform helps firms manage margin costs. She said real-time settlement frees up capital tied in delays. This allows faster response to market changes.
Google Cloud powers the system through its Universal Ledger platform. The platform supports secure and programmable transactions. It is designed for use by financial institutions.
James Tromans from Google Cloud said the system reduces operational friction. He said it also improves capital efficiency for market participants. The platform supports easy integration with existing systems.
24 7 tokenized cash aims to modernize financial operations
The service allows conversion of US dollars into digital tokens. These tokens can be used for trading, settlement, and treasury operations. Clients can also use them for margin requirements.
Tokenized deposits will extend beyond trading use cases. Businesses can use them for payments and internal fund transfers. The system supports programmable financial operations.
BMO said the service fits growing demand for continuous market activity. Global markets now operate beyond standard hours. This creates a need for always-on financial infrastructure.
Vernon said the system supports a modern and regulated payment framework. He noted that tokenized deposits are gaining traction. The service builds on this trend within institutional finance.
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