BMO has become the first bank to join CME Group’s tokenized cash initiative, under a three-way collaboration with Google Cloud that will allow institutional clients to move value continuously for margin, collateral and settlement workflows.
The announcement resolves speculation from CME’s February earnings call, when CEO Terry Duffy confirmed the exchange was working with an unnamed depository bank on its tokenized cash rollout. BMO is one of just seven custody and settlement banks CME works with for US Treasuries, making it a natural fit for the collateral and settlement workflows the initiative targets.
The mechanics are straightforward. BMO clients will be able to convert US dollars into tokenized instruments on Google Cloud Universal Ledger (GCUL), a permissioned distributed ledger, with those tokens usable for margin and collateral at CME Clearing around the clock. Launch is targeted for the second half of 2026, subject to regulatory approval.
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