OSFI Clears Path for Blockchain-Based Deposit Services with Tokenized Deposits Ruling
Canada's Office of the Superintendent of Financial Institutions (OSFI) has made it clear that tokenized deposits will be treated as equivalent to traditional bank deposits under the law. This means that blockchain-based deposit services can now operate without fear of regulatory hurdles.
The OSFI statement emphasized that the underlying technology of a financial product or service does not determine its legal character. As a result, tokenized deposits will be subject to the same regulations as conventional deposits.
Tokenized deposits are digital tokens representing deposits held in bank accounts that can be used on blockchain and other distributed ledger technology (DLT) platforms. By treating these deposits as equivalent to traditional ones, OSFI aims to ease the rollout of blockchain-based deposit services.