Canadian Banks Unite for Tokenized Deposit Network

Canada's six largest banks are collaborating on an initiative to develop a shared tokenized deposit network. The system would allow digital bank deposits to move faster between financial institutions and potentially connect with broader digital asset networks.

The project focuses on moving tokenized deposits between Canadian financial institutions, with other deposit-taking institutions likely to join later. None of the six banks has committed to launching a customer-facing tokenized deposit product, and no blockchain, launch date, or technical architecture has been announced.

The initiative brings together Bank of Montreal, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, Scotiabank, and TD Bank Group. The goal is to explore digital money infrastructure that supports faster, more efficient, and programmable payments while keeping customer funds inside the regulated banking system.

Tokenized deposits are a digital representation of money held at a commercial bank, unlike stablecoins issued by non-bank companies. This initiative aims to create an interoperable model for tokenized deposits between financial institutions, with the long-term plan to connect it with broader digital asset initiatives.