Canada Allows Tokenized Bank Deposits Without Separate Crypto Rulebook

Canada's Office of the Superintendent of Financial Institutions (OSFI) has clarified its stance on tokenized bank deposits, stating that they remain traditional bank deposits despite being represented on a blockchain.

The clarification means that federally regulated banks can explore tokenized deposits within the existing banking framework without waiting for a separate crypto rulebook.

According to OSFI, the underlying technology used to deliver a financial product does not determine its legal nature. Tokenized deposits are considered claims on a regulated financial institution, with the digital token representing how that claim can be represented, transferred, or integrated with other financial infrastructure.