Canada’s Top Six Banks Team Up On Tokenized Deposit Project

Six of Canada’s largest banks are jointly exploring a Canadian dollar tokenized deposit system aimed at speeding up money movement between financial institutions, with plans to eventually connect to broader digital asset networks.

Big Six Banks Join Forces On Shared System

Bank of Montreal, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, Scotiabank, and TD Bank Group are behind the initiative, with the first phase focused on transferring tokenized deposits efficiently among the participating banks. The group said additional banks could join the project as it develops further, with a longer term goal of linking to other emerging digital asset systems.

Goal Is Faster Payments Within Regulated Banking

Unlike stablecoins issued by crypto companies, tokenized deposits represent digital versions of money customers already hold at a bank. The banks said the initiative is designed to enable faster, programmable payments for Canadian customers while keeping funds inside the existing regulated banking system and preserving financial stability.

Part Of A Broader Global And Domestic Push

The move places Canada alongside a growing number of countries where banks are building blockchain based deposit infrastructure, including similar efforts underway among US regional lenders and major global banks. It also builds on Canada’s earlier work in this space, including a completed bond settlement test using tokenized Canadian dollars earlier this year, and a separate digital Canadian dollar initiative backed by a major retailer and bank.