North American banking giant BMO, in partnership with CME and Google Cloud, launched a "tokenized cash" platform targeting 24/7 instant settlement.

As global markets move towards a 24/7 trading model, the settlement cycles of traditional banks have become a major pain point for institutional investors. Bank of Montreal (BMO), the eighth largest bank in North America, today announced a major initiative to provide tokenized cash solutions to CME Group's institutional clients through Google Cloud's distributed ledger technology.

This initiative will allow institutional clients to convert US dollars into tokenized instruments to meet margin requirements for CME Group derivatives trading, completely freeing them from the constraints of traditional banking operations.

Breaking Bank Time Limits: T+0 All-Day Liquidity

Currently, institutions often face low capital utilization rates when dealing with margin calls triggered by after-hours market volatility due to the deadlines set by bank settlement systems. BMO's new platform utilizes Google Cloud Universal Ledger (GCUL) technology to create a private and regulated permissioned network.

Derek Vernon, head of cash and payments solutions for BMO North America, pointed out that this capability marks BMO's ambition to bring regulated currencies into a modern, programmable environment. Customers will be able to move funds continuously based on market demand, rather than bank opening hours, which will effectively reduce funding gaps and operational friction.

Future plans: From tokenized cash to "tokenized deposits"

Beyond instant margin settlement, BMO's strategic move has a broader scope. The platform anticipates receiving regulatory approval in the second half of 2026 to officially launch its tokenized cash services to regulated financial services companies.

In addition, BMO plans to launch "Tokenized Deposits," which will allow commercial bank funds to exist digitally and be used for a wider range of B2B payments, corporate treasury movement, and programmable cash applications. Compared to unstable stablecoins, these bank-backed tokenized assets are considered 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 a pilot program for wholesale payments and asset tokenization back in 2025, and BMO was the first bank to join this ecosystem. James Tromans, General Manager of Google Cloud Web3 and Digital Assets, stated 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 moves toward 24/7 trading, CME is committed to providing clients with the efficiency they need to enable businesses to fulfill settlement obligations in real time, freeing up capital that was previously tied up in traditional banking cycles.

This news echoes the recent announcement by the New York Stock Exchange (NYSE) of the development of a tokenization platform, demonstrating that Wall Street and top banks are joining forces to revamp the "underlying pipeline" of global finance, pushing RWA (Real-World Assets) and currency tokenization into the mainstream.

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