Canada's Big Six Banks Unite on Shared Blockchain for Instant Deposits
Canada's six largest banks - BMO, CIBC, National Bank, Royal Bank of Canada, Scotiabank, and TD Bank - are building a shared blockchain infrastructure for programmable Canadian dollars. This initiative aims to create tokenized deposits that can be moved between banks instantly, 24/7.
The goal is not just faster payments but also to defend the commercial banking model against USD-denominated stablecoins issued by non-bank companies. Tokenized deposits kept within the banking system generate credit for the economy, whereas those converted into stablecoins do not.
OSFI (Office of the Superintendent of Financial Institutions) recently clarified that tokenized deposits are still subject to the same capital requirements and supervisory oversight as traditional deposits. The banks' shared ledger will enable atomic settlement, allowing transactions to be settled in seconds rather than hours or days.