Canada’s six largest banks said on 22 September that they were jointly exploring a Canadian-dollar tokenised deposit system. The participants are BMO, CIBC, National Bank of Canada, RBC, Scotiabank and TD. Their first phase aims to move tokenised deposits between Canadian financial institutions. The banks have not committed to issuing the deposits.
The initiative targets faster, more efficient and programmable payments while preserving safety, stability and effective regulatory oversight. A joint statement said other deposit-taking institutions could join at an appropriate time. CoinDesk reported that the move comes as banks elsewhere, including US regional lenders, build similar tokenised-deposit networks.
A COMMON MODEL FOR DIGITAL MONEY
Tokenised deposits represent money already held at a regulated bank, rather than a separate stablecoin issued by a non-bank company. Canada’s banking regulator, OSFI, said on 10 September that tokenised deposits are not legally distinct from traditional deposits.
The first phase is limited to transfers among participating Canadian institutions. The longer-term ambition is to connect the system with other emerging digital-asset initiatives, but the banks disclosed no launch date, technology provider or commercial terms.
EXPLORATION PRECEDES ANY ISSUANCE
The announcement follows Canadian experiments with tokenised wholesale finance, including Project Samara, in which the Bank of Canada, RBC and TD tested issuance and settlement of a C$100 million bond. The new project is distinct because it brings all six major banks into one exploratory commercial-deposit initiative.
The project remains exploratory and does not yet commit the lenders to issuing a tokenised deposit.