OSFI Clears Path for Tokenized Deposits in Canada
Canada's Office of the Superintendent of Financial Institutions (OSFI) has clarified that tokenized deposits are not legally distinct from traditional bank deposits.
This clarification gives federally regulated financial institutions a clearer path to develop deposit products using blockchain and other digital technology.
According to OSFI, the technology used to issue or deliver tokenized deposits does not determine their legal nature. The regulator treats tokenized deposits as existing bank deposits, leaving banks free to use different technical systems as long as the product remains within their permitted activities.
Financial institutions must ensure that products built with new technology comply with applicable laws and regulations, including when outside companies perform parts of the service on their behalf.