Canada's Big Six Banks Unite on Tokenized Deposit System
Canada's six largest banks are teaming up to create a Canadian-dollar tokenized deposit system. The initiative aims to keep the country's payments infrastructure competitive and secure as more finance moves online.
The project involves Bank of Montreal, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, The Bank of Nova Scotia, and TD Bank Group. These banks make up the largest institutions in the country.
According to a joint statement, the first phase focuses on efficiently moving tokenized deposits between financial institutions. The system aims to deliver faster, more efficient, and programmable payments while preserving safety, stability, and regulatory oversight.
The project follows regulatory clarification from Canada's Office of the Superintendent of Financial Institutions. In March, a separate pilot program called Project Samara tested how blockchain technology can improve government bond issuance and settlement.