BMO Capital Markets designed and built a blockchain issuance system by using open source blockchain infrastructure with the goal of testing a next generation settlement system. The prototype allows the security issuer and buyer to view the transaction on the blockchain, as well as verify the accuracy of the term sheet information and payment amounts until maturity of the fixed-income security.
The technology is intended to enable cost reduction in several areas including compliance, financial reporting, security clearing and settlement of cash transactions. BMO Capital Markets will continue to partner with clients and other institutions in the evolution of blockchain as an open settlement system.
BMO Capital’s use of blockchain technology trends toward an increased use in financial applications. Per a report, the four biggest auditing firms globally – Deloitte, EY, KPMG and PwC – are part of a group of 20 banks in Taiwan that are experimenting with blockchain technology for auditing financial reports.
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