OSFI Gives Tokenized Deposits Same Legal Status as Traditional Deposits in Canada

Canada's Office of the Superintendent of Financial Institutions (OSFI) has issued a statement clarifying that tokenized deposits carry the same legal status as traditional deposits.

The clarification, published on September 10, aims to provide regulatory certainty for financial institutions exploring blockchain-based deposit products.

According to OSFI, the underlying technology of a financial product or service does not determine its legal nature. This means that tokenized deposits are subject to the same legal framework as conventional deposits.

The regulator emphasized that this clarification is part of its 'technology-neutral stance' toward permitted activities of federally regulated financial institutions.