Bank of Canada completes Project Samara, testing tokenized bonds using blockchain with major Canadian banks and real central bank settlement.
Canada has completed a major blockchain experiment in its financial markets. The Bank of Canada announced the completion of Project Samara on March 5, 2026. The project involved testing the issuance, trading and settlement processes of tokenized bonds using distributed ledger technology.
The collaboration with a number of major institutions was part of the pilot. These included Royal Bank of Canada, TD Bank Group and Export Development Canada.
Canada Completes First Tokenized Bond Experiment
A purport of Project Samara was the issuance of Canada’s first tokenized bond. Export Development Canada issued a C$100m bond with a maturity of less than 3 months.
🚨 Canada just tested tokenized government bonds.
The Bank of Canada and TD Bank piloted a $100M CAD bond issuance using Hyperledger Fabric.
Governments are bullish on RWA 🚀 pic.twitter.com/dUzVvKNE4y
— Real World Asset Watchlist (@RWAwatchlist_) March 5, 2026
The bond was sold to a limited number of investors who were in the pilot program. Importantly, the lifecycle of the bond was governed on a separate blockchain-based infrastructure known as the Samara Platform.
Related Reading: ICE Invests in OKX at $25B Valuation to Expand Tokenized Stock Trading | Live Bitcoin News
The system enabled the bond to be created, sold, traded and settled using distributed ledger technology alone. Furthermore, the settlement payments were settled in wholesale central bank deposits.
The Samara Platform has been constructed to support all points of the bond lifecycle. This involved issuance, bidding, coupon payments, redemption and secondary trading.
The system was created by using the Hyperledger Fabric block chain framework. In this respect it incorporated separate ledgers for both bonds and cash.
This integration facilitated settlement between market participants in an instant. As a result, secondary market trading and settlement took place on-chain directly and without delays.
The experiment followed on from previous research initiatives that were undertaken under the Project Jasper series. Those projects previously discussed the use of blockchain with financial infrastructure.
However, Project Samara was the initial test of a real bond supported and settled in central bank money.
Results Show Efficiency Gains but New Technical Challenges
The experiment provided some benefits of the use of blockchain in the capital market. Participants reported better operational efficiency and better data integrity.
Additionally, the technology simplified processes between institutions. These improvements helped in reducing counterparty risks and settlement risks during transactions.
However, the test also revealed a number of technical challenges. Although there were gains in efficiency in some areas, there was added operational complexity created by this system.
For instance, the participants incurred greater liquidity costs and coordination requirements. Institutions also required new governance frameworks to manage shared blockchain infrastructure.
Furthermore, the experiment uncovered some potential operational dangers linked with technology reliability. Some of these risks included auditing processes, system fallback mechanisms and technical monitoring.
Another key discovery was related to the regulatory and legal issues. Some jobs in financial markets still need to have centralized structures.
For example, services such as marketplace operators, custodians and trade reporting have not lost importance under existing financial rules. Therefore, gaps between traditional regulations and decentralized blockchain models were identified by regulators.
The pilot was done under special regulatory testing frameworks. Oversight was given by the Ontario Securities Commission, Autorité des marches financiers and the Canadian Investment Regulatory Organization.
Blockchain Adoption in Financial Markets May Take Time
Although the pilot proved the technical feasibility of tokenized bonds, officials expect adoption to happen gradually. Financial institutions still have a number of integration challenges.
Many banks are running on legacy infrastructure that has been implemented over decades of time. The replacement or modification of these systems takes a lot of investment and coordination across the industry.
Additionally, market participants may be reluctant to change core financial infrastructure promptly. Risk management frameworks, regulatory compliance and operational processes would all require change.
The results offer valuable insights to policymakers and financial institutions looking into tokenized securities. Future experiments may involve extending the use of distributed ledger technology to other financial assets.
Overall, the Bank of Canada’s test indicates that the blockchain can be used to support real-world bond issuance and settlement. However, mass adoption is likely to need additional research, adjustments to regulations, and industry participation.
