Forex
Canada's Big Six Banks Explore Shared Tokenized Deposit Model
Canada's six major banks are exploring a shared approach to tokenized deposits. The initiative follows regulatory clarification that tokenized deposits are not legally distinct from conventional deposits.
The banks involved - Bank of Montreal, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, Bank of Nova Scotia and Toronto-Dominion Bank - have announced a joint exploration of Canadian-dollar digital money solutions. The first phase focuses on transferring tokenized deposits between financial institutions.
According to the Office of the Superintendent of Financial Institutions (OSFI), existing prudential, technology, and cyber requirements continue to apply to tokenized deposits.