Canada's Big Six Banks Unite for Blockchain-Based Deposit Network

Canada's Big Six banks are exploring a shared deposit tokenization network, marking a significant step towards implementing blockchain-based payment infrastructure in the country. The initiative brings together Bank of Montreal, CIBC, National Bank of Canada, RBC, Scotiabank, and TD Bank to test a system for transferring digital representations of bank deposits among participating institutions.

The project's first phase focuses on transfers between financial institutions, with the long-term goal of connecting it to other emerging digital asset initiatives. This could enable around-the-clock payment capabilities and faster, more efficient transactions within the regulated banking system.

This development follows March's $100 million Project Samara bond issuance, which used tokenized wholesale Canadian dollars on a distributed ledger. The banks say that additional lenders may join the initiative as it develops.