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- Canada’s six largest banks are jointly exploring a Canadian dollar tokenized deposit system for interbank transfers.
- The participating banks announced the exploration initiative on Sept. 22 to examine digital commercial bank money.
- No production launch date, technical architecture, or commercial rollout plan has been announced yet.
Canada’s six largest banks are jointly exploring a Canadian dollar tokenized deposit system designed to move digital bank deposits between financial institutions. The first phase will focus on interbank transfers while the banks consider how the system could later connect with other digital-asset infrastructure.
The participants are BMO, CIBC, National Bank of Canada, RBC, Scotiabank and TD Bank Group. No production launch date has been announced.
First Phase Focuses on Interbank Transfers
The banks announced the initiative on Sept. 22 as part of efforts to explore digital forms of commercial bank money. They said tokenized deposits could support more programmable payments and potentially faster transfers within existing regulatory frameworks.
The initial phase will examine how tokenized deposits can move efficiently between participating institutions. Other Canadian deposit-taking institutions could be added later, although the group has not provided a timetable.
OSFI Says Tokenized Deposits Remain Deposits
The initiative follows guidance from Canada’s Office of the Superintendent of Financial Institutions, or OSFI, on Sept. 10. OSFI said its regulatory approach is technology-neutral and that representing a deposit through digital infrastructure does not automatically change its legal nature.
“Tokenized deposits are, for example, not legally distinct from traditional deposits.”
Technology and Launch Details Remain Undisclosed
The banks have not identified the distributed-ledger platform or technical architecture they plan to use. They also have not said whether the first phase will involve a closed pilot, live transactions or direct customer access. No specific role for the Bank of Canada or Payments Canada was disclosed in the announcement.
Banks Plan Broader Digital-Asset Links
The group said its longer-term objective is to make the system interoperable with other digital-asset infrastructure as those projects develop. It did not identify specific networks or initiatives.
For now, the project remains in an exploration and development stage. The banks have not disclosed a commercial launch date, customer rollout plan or final network design.
