National Bank of Canada completes US$150M Debt Issuance and Blockchain Test in the US Financial Markets
April 20, 2018
150.00 Million USD
On April 20, 2018, National Bank of Canada, with the support of J.P. Morgan, issued a US$150 million, one-year floating-rate Yankee certificate of deposit, with a parallel simulation of the issuance using blockchain technology. The blockchain test involved the parties mirroring the execution of the actual transaction through a debt issuance application developed by J.P. Morgan that runs on Quorum®, an open-sourced variant of the Ethereum blockchain, specifically designed to meet the needs of financial markets participants.
The blockchain debt issuance application is designed to incorporate functions across the entire debt instrument transaction lifecycle, including origination, distribution, execution, settlement, interest rate payments, and maturity repayments. This unique collaboration between leading market participants is an important milestone in progressing blockchain technology toward real financial markets applications.
National Bank of Canada, together with its subsidiaries, forms one of Canada's leading integrated financial groups. National Bank of Canada is headquartered in Montreal and has operations across Canada.
McCarthy Tétrault LLP advised National Bank of Canada, the issuer, with a team led by Patrick Boucher that included Charles Morgan, Ana Badour, and Laure Fouin.