Canadian Banks Join Forces on Tokenized Deposit Systems
Canada's largest banks have formed an alliance to explore tokenized deposit systems. The six participating banks are Bank of Montreal, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, Scotiabank, and TD Bank.
The goal is to create a Canadian-dollar tokenized deposit system that enables faster and more efficient programmable payments. The first phase will focus on moving tokenized deposits across Canadian financial institutions, with the long-term objective of connecting with other emerging digital assets initiatives.
This move follows similar efforts by US banks, including Wells Fargo, Citi, JPMorgan, and Bank of America, which are working to combat the threat of cryptocurrency companies. Tokenized deposits will be settled instantly across a 24/7 blockchain network.