Key facts
- Canada's six largest banks are exploring a system for tokenized Canadian dollar deposits.
- The initiative involves Bank of Montreal, CIBC, National Bank of Canada, Royal Bank of Canada, Scotiabank, and TD Bank Group.
Canada's six largest banks are jointly exploring a system for tokenized Canadian dollar deposits to facilitate interbank payments. The initiative follows recent clarification from Canadian regulators on the legal treatment of such digital assets.
Canadian banks are exploring the use of tokenized deposits for interbank payments, signaling a move towards integrating digital asset technology into traditional financial infrastructure and potentially improving payment efficiency.
Canada's six largest banks are jointly exploring a system for tokenized Canadian dollar deposits, which would allow digital representations of bank deposits to be moved between financial institutions. The initiative includes Bank of Montreal, CIBC, National Bank of Canada, Royal Bank of Canada, Scotiabank, and TD Bank Group. This project comes shortly after the Office of the Superintendent of Financial Institutions (OSFI) provided clarity on September 10, stating that tokenized deposits are legally indistinguishable from traditional deposits and remain a liability of the issuing bank. Unlike fiat-backed stablecoins, these tokenized deposits are not separate digital assets. The banks aim for the system to support faster and programmable payments, with potential future expansion to other deposit-taking institutions. This development aligns with Canada's broader efforts to establish a regulatory framework for digital money, including the Stablecoin Act enacted in March, which sets rules for fiat-backed stablecoins issued by non-financial institutions.
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