Canada's 'Big Six' banks to launch interbank tokenized deposit initiative
Canada's six largest banks have launched a joint initiative to test a shared Canadian-dollar tokenized deposit system that would allow faster transfers of digital representations of bank deposits between institutions. The pilot's initial phase will focus on moving tokenized deposits across participating banks, with a longer-term aim of linking the system to other digital-asset initiatives.
Why It Matters
The project could let major Canadian banks offer near-instant, programmable, around-the-clock payments while keeping customer funds inside the regulated banking system, signaling a coordinated move by incumbents into tokenized money. It also positions Canada alongside global banking efforts to use tokenized deposits for faster domestic and cross-border payments.
Key Facts
- Participants: Bank of Montreal, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, Scotiabank, TD Bank Group
- Project focus (phase 1): Moving tokenized deposits across participating Canadian banks
- Longer-term goal: Connect with other emerging digital-asset initiatives
- Relation to stablecoins: Tokenized deposits are digital representations of existing bank funds, distinct from stablecoins issued by crypto companies
- Recent Canadian tests referenced: Bank of Canada, RBC and TD completed Project Samara in March, testing a CAD 100 million bond on a distributed ledger
Canada's six largest banks have announced a joint project to explore a shared system for tokenized Canadian-dollar deposits. The participating institutions — Bank of Montreal, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, Scotiabank and TD Bank Group — said the initiative will begin with tests that move digital representations of bank deposits between those lenders.
The statement from the banks described the first phase as focused on efficient transfers of tokenized deposits, while noting a longer-term objective of connecting the system to other digital-asset initiatives. The group also said additional banks could join the effort in future phases.
The banks emphasized that tokenized deposits in this model are digital representations of funds already held at regulated banks, rather than stablecoins issued by crypto firms. They framed the project as a way to enable faster, programmable and around-the-clock payments for customers while maintaining oversight and financial stability within the regulated banking sector.
The move follows a broader industry push to put deposits on blockchain infrastructure. The announcement referenced related activity globally — including regional and large U.S. banks developing tokenized-deposit networks and Swift's tests of tokenized deposits for 24/7 cross-border payments — and complements recent Canadian work such as Project Samara, which tested issuing, trading and settling a CAD 100 million bond on a distributed ledger.
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