Tokenized Deposits in Canada: How Banks Can Build Now

Canadian financial institutions are rapidly advancing the development of tokenized money rails to modernize treasury and payment systems. On September 22, Canada's six largest banks—BMO, CIBC, National Bank, RBC, Scotiabank, and TD—announced a joint initiative to explore Canadian dollar tokenized deposits. This effort follows a September 10 ruling by the Office of the Superintendent of Financial Institutions (OSFI) clarifying that tokenized deposits maintain the same legal status as traditional deposits. Major banks are also participating in international projects like the BIS's Project Agorá and are collaborating on a USD stablecoin issuer targeted for 2027. Domestically, the Bank of Canada is supporting these efforts, building on the success of Project Samara, which saw the country's first tokenized bond settlement. These developments aim to provide 24/7 programmable money, reducing settlement times and intraday credit exposure. By focusing on a unified digital asset infrastructure, Canadian banks intend to maintain control over keys, policy, and data while ensuring interoperability across various blockchain networks.