North American banking giant BMO partners with CME and Google Cloud to launch "tokenized cash" platform, targeting 24/7 real-time settlement

North American banking giant BMO announced today (the 24th) that it will collaborate with CME Group and Google Cloud to launch a 24/7 blockchain-based “Tokenized Cash” platform. Using Google Cloud’s distributed ledger technology, institutional clients will be able to break through traditional banking hours and achieve real-time settlement of margins and collateral.
(Background: NYSE partners with Securitize to launch RWA tokenized securities platform: 24/7 trading, instant settlement, stablecoin deposits and withdrawals)
(Additional context: BlackRock CEO’s letter to shareholders: Tokenization is like the internet in 1996, set to revolutionize the financial industry)

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• Breaking Bank Hours: T+0 All-Day Liquidity
• Future Plans: From Tokenized Cash to “Tokenized Deposits”
• Infrastructure Support from Google Cloud and CME

As global markets move toward 24/7 trading, traditional banking settlement cycles have become a major pain point for institutional investors. North America’s eighth-largest bank, BMO, announced today a major initiative to leverage Google Cloud’s distributed ledger technology to provide a tokenized cash solution for CME Group’s institutional clients.

This initiative will enable clients to convert USD into tokenized instruments to meet CME derivatives margin requirements, completely freeing them from traditional banking operating hours.

Breaking Bank Hours: T+0 All-Day Liquidity

Currently, when facing margin calls triggered by after-hours market volatility, institutions are limited by bank settlement cut-off times, leading to low capital utilization. BMO’s new platform, utilizing Google Cloud’s Universal Ledger (GCUL) technology, creates a private, regulated permissioned network.

Derek Vernon, head of BMO North America Cash and Payments Solutions, stated that this capability marks BMO’s ambition to bring regulated currency into a modern programmable environment. Clients will be able to move funds continuously based on market demand, rather than banking hours, effectively reducing capital gaps and operational friction.

Future Plans: From Tokenized Cash to “Tokenized Deposits”

Beyond instant margin settlement, BMO’s strategic vision includes more far-reaching goals. The platform is expected to receive regulatory approval in late 2026 and will then be opened to regulated financial service providers for tokenized cash services.

Additionally, BMO plans to introduce “Tokenized Deposits,” allowing commercial bank funds to exist in digital form, applicable to broader B2B payments, corporate treasury movements, and programmable cash applications. Compared to volatile stablecoins, bank-backed tokenized assets are seen as a more compliant on-chain funding solution.

Infrastructure Support from Google Cloud and CME

This collaboration is no coincidence. CME Group and Google Cloud announced pilot programs for wholesale payments and asset tokenization as early as 2025, with BMO being the first bank to join this ecosystem. James Tromans, Google Cloud’s Web3 and Digital Assets General Manager, said that through the GCUL platform, BMO and CME can significantly improve capital efficiency and reduce operational friction in global markets.

CME Group COO Suzanne Sprague emphasized that as the world shifts toward 24/7 trading, CME is committed to providing the efficiency clients need to settle in real time, freeing capital previously stuck in traditional banking cycles.

This announcement echoes recent news that NYSE is developing a tokenization platform, indicating that Wall Street and top banks are jointly transforming the underlying infrastructure of global finance, bringing RWA (Real World Assets) and currency tokenization into the mainstream.