Six major Canadian banks are jointly exploring the development of a Canadian-dollar tokenized deposit system, as the country’s financial sector looks at new forms of digital money and payment infrastructure. The initiative brings together BMO, CIBC, National Bank of Canada, RBC, Scotiabank and TD Bank Group.
The project will begin with tokenized deposits, which represent conventional bank deposits in digital-token form. According to the banks’ joint statement, the initiative is intended to support faster, more efficient and programmable payments while maintaining existing standards around safety, stability and regulatory oversight.
Its first phase will focus on enabling tokenized deposits to move efficiently between Canadian financial institutions. Over the longer term, the participating banks aim to explore connections with other emerging digital-asset initiatives.
The banks also said the initiative could eventually include additional deposit-taking institutions, although no timetable for broader participation or a commercial launch has been announced.
The project follows recent regulatory clarification from Canada’s Office of the Superintendent of Financial Institutions. On September 10, OSFI said tokenized deposits are not legally distinct from traditional deposits, stressing that the technology used to represent a financial product does not change its underlying legal nature.
OSFI also said financial institutions remain responsible for ensuring that new digital products comply with existing laws and guidance covering areas including technology, cyber risk and third-party risk management. Banks are expected to engage with supervisors before introducing novel products or services.
The initiative highlights growing interest among traditional banks in using tokenization to modernize payments while keeping digital money within regulated banking structures.
