Payments Canada, the Bank of Canada and TMX Group have collaborated on a joint experiment with integrated securities and payment settlement platform.
Payments Canada, the Bank of Canada and TMX Group have collaborated on a joint experiment with integrated securities and payment settlement platform based on distributed ledger technology or DLT.
Bank of Canada has recently started working on its Jasper initiative aiming to probe into DLT and how it could be applied to payments in Canada. The collaborative project with Payments Canada and TMX Group represents Phase 3 of this project. In the first two phases, the focus was exploring and clearing settlement of high-value interbank payments by using Blockchain technology, according to a report published at Finextra.
“This experiment continues to push boundaries, so it is exciting to move into a third phase with a broader scope and another partner.”, said Gerry Gaetz, President and CEO of Payments Canada, who spoke with Finextra. He elaborated that they continue to learn by applying distributed ledger technology to their financial system.
While reaching a conclusion that DLT technology is unlikely to match the efficiency and net benefits of a centralized system, the bank is keen on exploring the possible advantages of the technology.
It is reported that the next phase of the project will develop a proof of concept for clearing and settlement of securities using the central bank cash-on-ledger model, as Gaetz explained to the online media.
It is expected that a vendor will be selected for the project in the near future.
More detail findings of Phase 3 are to be published at the Payments Canada Summit in Toronto. The event is taking place May 9 to May 11, 2018.