Canadian Banks Team Up on Tokenized Deposit Program

Six major Canadian banks are collaborating on a tokenized deposit program to modernize the movement of Canadian-dollar deposits through the financial system. The initiative includes Bank of Montreal, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, Scotiabank, and TD Bank Group.

The first phase of the project involves transferring tokenized deposits between participating financial institutions in Canada. This is a key step towards developing digital money that is secure, stable, and regulated.

According to OSFI (Office of the Superintendent of Financial Institutions), tokenized deposits are not legally distinct from traditional deposits simply because blockchain or other technology is used. A technology-neutral approach is taken by the regulator, which means they do not judge the legal characteristics of the financial product depending on the underlying technology.

The project comes at a time when Canada is developing a wider plan for digital money infrastructure. The Stablecoin Act was part of Bill C-15 that was proclaimed in March 2026, establishing a federal framework for issuing cryptocurrencies monetized by a stable tie to fiat currency.