Canada's Big Six Banks Unite for Tokenized Deposit System

Canada's six largest banks are joining forces to develop a Canadian-dollar tokenized deposit system. The initiative aims to make bank deposits easier to transfer between financial institutions using digital infrastructure.

The group includes BMO, CIBC, National Bank of Canada, RBC, Scotiabank and TD. Together, they plan to develop an interbank framework for moving tokenized deposits across Canada's banking system.

The first phase will focus on transfers between participating banks, streamlining customer payments and settlement via shared digital infrastructure. This could address a major challenge facing single-bank tokenized deposit systems, where transfers between banks require separate payment and settlement processes.