OSFI Clears Path for Blockchain-Based Deposits in Canada
Canada's top banking regulator, the Office of the Superintendent of Financial Institutions (OSFI), has clarified that tokenized deposits are legally identical to traditional bank deposits. This decision paves the way for lenders to record existing deposit claims on a blockchain without triggering new rules.
According to OSFI's finalized 2027 capital and liquidity guidelines, tokenized deposits are not distinct from conventional deposits if their core rights and risks remain unchanged. The framework marks one of the clearest regulatory statements yet from a major economy on how distributed ledger technology fits into traditional banking.
The regulator's stance is based on the principle that the economic substance of a product matters more than the technology used to record or transfer it. A tokenized deposit carrying the same rights as a standard deposit, including access to cash flows and claims in an insolvency scenario, will be treated the same way for capital and liquidity purposes.
OSFI's guideline does not automatically grant bank-like treatment to tokenized deposits. The regulator requires qualifying tokenized claims to be legally enforceable and redeemable at face value in fiat currency. Their value must also reflect the issuing bank's creditworthiness and asset-liability position.