- Canada launches first tokenized bond pilot using blockchain infrastructure in markets
- Project Samara tests blockchain settlement to modernize traditional bond issuance systems
- Governments worldwide accelerate experiments with tokenized bonds and digital debt
Canada has taken a notable step toward modernizing its financial infrastructure after completing a pilot program that tested the use of distributed ledger technology in bond markets, an initiative that ultimately resulted in the issuance of the country’s first tokenized bond and signaled growing institutional interest in blockchain-based capital market systems.
The project, known as Project Samara, was conducted by the Bank of Canada in partnership with Export Development Canada, Royal Bank of Canada, and TD Bank Group, with the participating institutions evaluating whether blockchain-style infrastructure could improve the efficiency of bond issuance, trading, and settlement processes that traditionally rely on multiple intermediaries and slower clearing systems.
As part of the experiment, Export Development Canada issued a 100 million Canadian dollar bond, equivalent to roughly $73.6 million, with a maturity of less than three months to a closed group of institutional investors, marking the first time a bond in Canada was issued, traded, and settled entirely through a distributed ledger environment.
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Blockchain Infrastructure Manages Full Bond Lifecycle
The platform used during the pilot was built on Hyperledger Fabric, enabling market participants to manage the full lifecycle of the security within a unified digital infrastructure that included issuance, investor bidding, coupon payments, redemption, and secondary trading activities. The system integrated separate ledgers for cash balances and bond ownership, allowing transactions to be processed simultaneously and enabling near-instant settlement compared with traditional capital markets where clearing and reconciliation may take multiple days.
Payments associated with the bond were processed using wholesale central bank deposits instead of commercial bank money, a structure designed to maintain the involvement of the central banking system while demonstrating how digital infrastructure could streamline settlement operations and reduce counterparty risks within institutional markets.
Participants involved in the pilot reported improvements in operational efficiency, transparency, and data accuracy, although researchers also noted that broader adoption could face challenges related to governance frameworks, regulatory oversight, and the technical integration of blockchain platforms with existing financial market infrastructure.
Global Institutions Expand Tokenized Bond Experiments
Canada’s experiment adds to a growing list of initiatives by governments and financial institutions exploring how distributed ledger technology can reshape the issuance and management of traditional financial assets such as bonds. In 2018, the World Bank issued a two-year A$110 million digital bond known as Bond-i that was arranged by the Commonwealth Bank of Australia, widely considered the first bond whose lifecycle was recorded entirely on a blockchain system.
More recently, the Monetary Authority of Singapore launched Project Guardian to study tokenized assets and decentralized finance applications in wholesale markets, while the Hong Kong Monetary Authority issued a tokenized green bond in 2023 and expanded the initiative with additional digital bond offerings in both 2024 and 2025, highlighting the accelerating global interest in blockchain-powered financial market infrastructure.
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