TORONTO — Canada’s central bank, Toronto Stock Exchange operator TMX Group Ltd and Payments Canada announced on Tuesday they will work together to experiment with blockchain technology aimed at automating the securities settlement procedure.
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“A better settlement process would not only reduce the cost of securities transactions, but also support financial system resiliency, especially in periods of stress, through faster settlement times and reduced settlement risk,” said Carolyn Wilkins, the central bank’s senior deputy governor.
This is the third segment of “Project Jasper“, a proof of concept of a blockchain-based wholesale payment system, which the central bank began in 2016.
Previous segments concentrated on testing with clearing and settling high-value interbank expenditures using blockchain technology.
The new segment will experiment with the technology’s capacity to resolve various assets on the identical blockchain.