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Canada’s Big Six banks launch tokenized deposit initiative
Canada’s six largest banks—Bank of Montreal, CIBC, National Bank of Canada, Royal Bank of Canada, Scotiabank, and TD Bank Group—have launched a joint initiative to develop a tokenized Canadian-dollar deposit system. The project aims to modernize payment infrastructure by enabling faster, more efficient, and programmable interbank transfers.
The first phase of the initiative focuses on testing the movement of tokenized deposits between these participating financial institutions. Unlike stablecoins, which are separate digital assets, these tokenized deposits remain legal liabilities of the issuing banks. This distinction was supported by recent guidance from the Office of the Superintendent of Financial Institutions (OSFI), which clarified that tokenized deposits hold the same legal status as traditional deposits.
In the long term, the banks intend to explore connectivity with other digital asset initiatives and expand the network to include other deposit-taking institutions. The goal is to support 24/7 programmable payments that can execute automatically when specific conditions are met, potentially reducing settlement friction and reconciliation times within the Canadian financial system.
Entities
Bank of Montreal · CIBC · National Bank of Canada · Royal Bank of Canada · Scotiabank
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] Tokenized deposits will remain liabilities of the issuing regulated banks, distinguishing them from third-party stablecoins. crypto.news · cryptobriefing.com
- [● 3 SOURCES] The system aims to enable near-instant settlement and programmable payment features that execute when specific conditions are met. crypto.news · cryptobriefing.com
- [● 3 SOURCES] The first phase of the project will focus on the efficient transfer of tokenized deposits among the participating Canadian financial institutions. crypto.news · cryptobriefing.com
- [● 3 SOURCES] The project may eventually seek interoperability with other digital asset ecosystems and networks. crypto.news · cryptobriefing.com
- [● 2 SOURCES] The OSFI clarified that tokenized deposits are not legally distinct from traditional deposits and are not treated as a separate asset class. cryptobriefing.com
- [● 3 SOURCES] Six major Canadian banks are launching a joint project to test the transfer of tokenized Canadian-dollar deposits between regulated institutions. crypto.news · cryptobriefing.com