Canada's Big Six Banks Team Up for Interbank Tokenized Deposit System
Canada's six largest banks are exploring an interbank tokenized deposit system that could facilitate faster money transfers. The project brings Bank of Montreal, CIBC, National Bank, RBC, Scotiabank, and TD Bank Group together in a joint venture to test tokenized deposits between participating financial institutions.
The first phase will focus on moving tokenized deposits within the network before connecting it with other digital asset projects. The model aims to support faster, programmable payments while keeping customer funds inside the regulated banking system.
Tokenized deposits represent money that customers already hold at banks, differing from stablecoins issued by crypto companies. A shared network could allow banks to process payments around the clock while retaining existing banking controls and oversight.