Canada's Banks Unite for Tokenized CAD Deposits
Six of Canada's largest banks have joined forces to develop tokenized CAD deposits, aiming to modernize digital payments within the financial system.
The participating banks include Bank of Montreal, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, Scotiabank, and TD Bank Group. This initiative focuses on creating centralized, programmable, and fast digital payments by transferring tokenized deposits between financial institutions in the first phase.
The project takes a technology-neutral approach, as clarified by the OSFI, which states that tokenized deposits are not legally distinct from traditional deposits simply because blockchain or other technology is used. This means that banks can explore the use of digital assets while maintaining regulatory compliance.