Payments Canada, Bank of Canada and TMX Group have announced a new collaboration to experiment with an integrated securities and payment settlement platform based on blockchain technology.

The move is part of the third phase of the Project Jasper research initiative which was launched in March 2016 and sought to better understand how DLT could transform the future of payments in Canada.

This new phase of the project will develop a proof of concept for the clearing and settlement of securities using the central bank cash-on-ledger model. The platform will seek to discover greater speed and efficiency by automating the securities settlement process.

In the first two phases, the project focused on exploring the clearing and settlement of high-value interbank payments using DLT.

Gerry Gaetz, president and CEO of Payments Canada, said: “This experiment continues to push boundaries, so it is exciting to move into a third phase with a broader scope and another partner. We continue to learn by applying distributed ledger technology to a wider set of functions within our financial system.”

John Lee, vice president and head of Innovations and enterprise delivery at TMX Group, added: “It is vital to explore a financial ecosystem that leverages innovative technologies to optimise the business transaction process for all Canadian investors.

“We believe industry collaboration among key stakeholders across Canada’s capital markets is critical to the success and long-term viability of this project.”

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