Canada settles first tokenized bond with digital money

Bank of Canada pioneers first wholesale CBDC settlement for tokenized bond

  • The Bank of Canada has issued its first tokenized bond settled in wholesale central bank digital currency (wCBDC).
  • The C$100 million (US$73m) digital bond was issued by Export Development Canada and settled on a purpose-built DLT platform called Samara.
  • The transaction used a wholesale Canadian dollar token (W-CAD) minted by the central bank, enabling atomic settlement.
  • This live issuance marks a significant step in Canada’s exploration of tokenization for financial market efficiency and security.

The Bank of Canada has enabled the country’s first live settlement of a tokenized bond using its wholesale central bank digital currency. This pioneering transaction involved a C$100 million (US$73m) bond issued by Export Development Canada and settled on the distributed ledger platform Samara. Consequently, the event represents a concrete advancement in the practical application of wCBDC for institutional financial instruments.

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EDC described the issuance as “an important step in deepening our understanding of tokenization and distributed ledger technology and how it can contribute to the efficiency and security of financial instruments.” However, this project builds on the Bank of Canada‘s earlier Project Jasper series, which launched in 2016. Meanwhile, the settlement was executed using a wholesale Canadian dollar token (W-CAD) minted by the central bank, achieving atomic settlement.

The bond was arranged by RBC Capital Markets and TD Securities and sold to a closed investor group. This experiment provides live data on the operational benefits of tokenized assets settled in central bank money.

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