Bank of Montreal has hired Imran Ibrahim to lead the bank’s digital assets and tokenization strategy.Aaron Vincent Elkaim/The Canadian Press
Bank of Montreal BMO-T has created a new role overseeing digital assets and tokenization as Ottawa and lenders race to figure out how to adopt the quickly evolving technology.
BMO has hired Imran Ibrahim – formerly head of cross-border payment products and new initiatives at Canadian Imperial Bank of Commerce – for the new role.
Mr. Ibrahim will lead the bank’s digital assets and tokenization strategy, with a focus on advancing how the technology can be applied to bank deposits.
Banks and fintechs have been navigating ways to adopt digital tokens, such as stablecoin, as consumers and businesses increasingly use the new type of currency to make real-time, lower cost payments and transfers. While the value of digital tokens can be volatile, stablecoin is pegged to a fiat currency, such as the U.S. dollar, to maintain a stable value.
However, central banks and regulators have warned that digital tokens come with risks linked to potential money laundering and financial stability concerns.
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In March, BMO said it plans to offer tokenized cash capabilities and deposits to institutional clients through the network of CME Group Inc. CME-Q, the largest derivatives exchange in the U.S.
Some U.S. banks have already blazed ahead. JPMorgan Chase & Co. JPM-N and Citigroup Inc. C-N are developing competing systems for new payments infrastructure. In November, JPMorgan – the world’s largest bank – started offering a deposit token called JPM Coin to institutional clients.
In Canada, fintech Wealthsimple Financial Corp. and Visa Canada have tested using stablecoin to settle payments as Ottawa works on launching its own regulatory regime for the digital currency.