A group of six major Canadian banks is exploring a Canadian-dollar tokenized deposit system, marking another step by traditional financial institutions toward blockchain-style digital settlement and programmable money.
The participating institutions are Bank of Montreal, CIBC, National Bank of Canada, Royal Bank of Canada, Scotiabank and TD Bank Group. Their initial work will focus on enabling tokenized bank deposits to move more efficiently between financial institutions.
Unlike stablecoins issued outside traditional banking structures, tokenized deposits remain claims on regulated banks. The proposed system would digitally represent Canadian-dollar deposits while preserving the underlying banking relationship and existing regulatory framework.
Canada’s banking regulator reinforced that distinction earlier this month. OSFI stated that tokenized deposits are not legally different from conventional deposits, adding that regulators focus on the nature of the financial product rather than the technology used to deliver it.
The banks said the project is intended to explore faster, more efficient and programmable payments for Canadian users. A longer-term objective is to connect the tokenized-deposit infrastructure with other emerging digital-asset initiatives, although the institutions have not announced a launch date.
The initiative adds to wider experimentation with tokenized financial infrastructure in Canada. The Block noted that earlier work in the country has included Project Samara, involving the Bank of Canada, Export Development Canada, RBC and TD, which examined blockchain technology for government-bond issuance and settlement.
For digital-asset markets, the project is significant because it shows regulated banks exploring tokenized money as part of existing deposit and payments systems rather than creating a separate form of privately issued currency.
