Bank of Canada and Major Banks Complete Canada's First Tokenized Bond Experiment

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Bank of Canada partnered with TD Bank and RBC to issue Canada’s first $100M tokenized bond on Hyperledger Fabric.
Project Samara settled bond transactions in real time using wholesale central bank deposits directly on-chain.
The experiment improved operational efficiency and data integrity but introduced new governance and technology risks.
Regulatory gaps and integration challenges are expected to slow broader adoption of tokenized bond infrastructure in Canada.

The Bank of Canada has completed a live tokenized bond experiment alongside major Canadian financial institutions.

The project, known as Project Samara, involved TD Bank Group, RBC Capital Markets, RBC Investor Services, and Export Development Canada (EDC).

Together, they issued Canada’s first tokenized bond worth $100 million CAD. The bond was settled using wholesale central bank deposits on a distributed ledger technology platform built on Hyperledger Fabric.

Bank of Canada Leads Collaborative DLT Bond Experiment

The Bank of Canada took a central role in designing and executing Project Samara. The experiment tested whether distributed ledger technology could work in a real capital markets environment.

Unlike previous simulation-based projects, this one used actual central bank money throughout. That distinction made the findings more applicable to real-world financial infrastructure.

The Samara Platform managed the bond’s full life cycle from beginning to end. It handled issuance, bidding, coupon payments, secondary trading, and redemption on-chain.

Settlement occurred in real time, marking a clear departure from conventional processes. Participating institutions reported improved operational efficiency and data integrity across workflows.

Ron Morrow, Executive Director of Payments, Supervision and Oversight at the Bank of Canada, spoke directly to the project’s broader purpose. “Project Samara shows how the public sector and industry can work together to harness innovation in the payment ecosystem,” he said.

He added that the experiment helped the Bank understand the real-world benefits and challenges of tokenization in capital markets.

Morrow confirmed the Bank would continue playing a role as an enabler of payments innovation that serves Canadians.

The bond was issued to a closed investor group over a term of under three months. This limited scope allowed participants to focus on process quality rather than scale.

Every transaction was executed and settled directly on the blockchain. The results offered a clearer picture of how DLT could reshape capital markets infrastructure over time.

Challenges Emerge as Canadian Banks Navigate Tokenization Risks

While efficiency gains were recorded, the experiment also revealed notable operational challenges. New governance structures were required to manage coordination between participating institutions.

Liquidity costs and system complexity partially offset the improvements achieved. Oversight and reporting demands also increased throughout the pilot.

Scott Moore, Executive Vice-President and Chief Operating Officer at EDC, described the milestone as a proud moment for Canada. “Issuing Canada’s first tokenized bond is an exciting milestone for EDC and Canada,” Moore said.

He noted that EDC’s participation contributed to a deeper understanding of how tokenization can improve the security and efficiency of financial instruments. Moore credited the collaboration with trusted partners as a key factor in the project’s execution.

Jim Byrd, Global Head of Macro Products at RBC Capital Markets, reflected on what the experiment achieved beyond its technical scope. “This group worked together to advance innovation — achieving real-time settlement and reimagining how issuers and investors can interact with fixed-income markets,” Byrd stated.

He added that the insights gained would help RBC explore how these capabilities can evolve what it offers clients. Elizabeth St-Onge of TD Securities echoed that sentiment, saying the project provided insights to advance innovation in capital markets and the broader financial system.

Regulatory gaps presented another layer of complexity for the participating banks. Centralized roles such as custodian and marketplace operator did not fit neatly within DLT frameworks.

Off-platform trade reporting further exposed mismatches between existing rules and blockchain-based settlement.

Broader adoption is expected to progress slowly due to integration challenges and limited appetite for core infrastructure changes.

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