BMO to Offer Tokenized Cash for 24/7 Settlement in 2026
Bank of Montreal (BMO) has partnered with derivatives marketplace CME Group and Google Cloud to launch a tokenized cash and deposit platform. The move makes BMO the first bank to integrate with CME's solution on the Google Cloud Universal Ledger (GCUL). This new infrastructure will permit BMO's institutional clients to convert U.S. dollars into tokenized instruments, facilitating continuous, 24/7 settlement for margin calls and collateral movements. The service is slated to launch in the second half of 2026, pending regulatory approval.
The initiative directly addresses the operational constraints of traditional banking hours as financial markets increasingly move toward around-the-clock trading. CME Group's plan to shift its own cryptocurrency futures and options to 24/7 trading in early 2026 underscores the critical need for this type of seamless collateral infrastructure.
Clients will be able to move funds continuously when markets demand it, not when banking hours allow it.
— Derek Vernon, Head of North American Treasury and Payment Solutions at BMO
Institutional Tokenization Gains Momentum With Regulatory Tailwinds
BMO's venture into tokenized cash is not an isolated event but a key development in the broader institutional adoption of real-world asset (RWA) tokenization. This trend has been significantly accelerated by clearer regulatory pathways, such as the SEC's approval of Nasdaq's framework for tokenized securities on March 18, 2026. This landmark decision enables tokenized versions of existing securities to be traded and settled within established infrastructure like the Depository Trust Company (DTC), unifying liquidity rather than fragmenting it.
This integrated model, which treats a token as a new "format" for an existing asset rather than a new security, stands in contrast to earlier, "crypto-native" RWA projects that operated in siloed ecosystems. By building within the existing regulatory and settlement framework, major financial institutions are signaling a move from experimental proofs-of-concept to scalable, enterprise-grade financial plumbing designed for the future of 24/7 markets.
BMO Joins Crowded Field as JPMorgan, Fidelity Advance Token Plans
The race to build the next generation of financial market infrastructure is intensifying. BMO's announcement places it in direct competition with other financial giants that are aggressively pursuing asset tokenization. JPMorgan has already deployed its JPMD deposit token on Coinbase's layer-2 blockchain, Base, for corporate clients. Similarly, asset management titan Fidelity Investments has announced its intention to launch a U.S. dollar-backed stablecoin, the Fidelity Digital Dollar.
These parallel efforts demonstrate a widespread conviction among top-tier financial firms that tokenization is essential for improving capital efficiency and reducing settlement risk. For BMO, the platform is a strategic foundation that extends beyond derivatives clearing. The bank also intends to offer tokenized deposits to support general-purpose B2B payments and programmable cash applications for a wider client base.
