Canadian Banks Explore Tokenized Deposit System for Faster Payments

Canada's six largest banks are working together on a tokenized deposit system to keep their payments infrastructure competitive and secure.

The initiative, which involves Bank of Montreal, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada (RBC), The Bank of Nova Scotia, and TD Bank Group, aims to deliver faster, more efficient, and programmable payments to customers while preserving safety, stability, and effective regulatory oversight.

The project follows regulatory clarification from Canada's Office of the Superintendent of Financial Institutions (OSFI), which stated that tokenized deposits are 'not legally distinct from traditional deposits.'