Canada's Big Six Banks Join Forces on Tokenized CAD Deposits
Canada's six largest banks are working together to develop a shared approach for moving tokenized Canadian dollar (CAD) deposits between institutions. The project aims to make payments faster and more programmable while remaining rooted in traditional banking liabilities.
The participating banks - Bank of Montreal, CIBC, National Bank of Canada, Royal Bank of Canada, Scotiabank, and TD Bank Group - stated that the work will begin with transferring tokenized deposits across Canadian financial institutions. Future stages could expand connectivity to other digital asset systems.
The initiative focuses on tokenized bank deposits, which are still considered liabilities of the issuing bank. The banks emphasized that this distinction is crucial: the deposit remains a bank liability rather than an independent digital asset.