Canada Tokenized Deposits Plan Brings Six Major Banks Together

• Six major Canadian banks are jointly exploring tokenized CAD deposits.
• The first phase will focus on transfers between participating banks.
• OSFI says tokenized deposits remain legally equivalent to traditional deposits.

Canada tokenized deposits are moving closer to testing after six major banks announced a joint development project. The group includes BMO, CIBC, National Bank, RBC, Scotiabank, and TD. The first phase will focus on moving tokenized Canadian-dollar deposits between participating financial institutions. The banks said the project aims to support faster, programmable payments while maintaining regulatory oversight.

Canada Tokenized Deposits Project Starts With Interbank Transfers

The Canada tokenized deposits initiative will begin with transfers across participating banks. Each token would represent a deposit already recorded as a liability of the issuing bank. That structure differs from stablecoins, which generally rely on separate reserve assets held by an issuer, according to a Bloomberg report.

The banks said the longer-term goal includes links with other emerging digital asset initiatives. However, they have not provided a timetable for commercial deployment or wider customer access. Other deposit-taking institutions could join the project later, according to the joint statement.

Canada tokenized deposits also gained regulatory clarity earlier this month. OSFI said tokenized deposits are not legally different from traditional deposits because their technology changes. Banks must still follow existing legal, operational, cybersecurity, and third-party risk requirements.

Canada Tokenized Deposits Build on Earlier Blockchain Tests

The Canada tokenized deposits project follows Project Samara, which tested blockchain-based bond issuance and settlement. The Bank of Canada, EDC, RBC, and TD completed that experiment in March 2026. EDC issued a C$100 million tokenized bond to a closed investor group.

Project Samara used Hyperledger Fabric and wholesale central bank deposits for payments. The system supported issuance, bidding, coupon payments, redemption, secondary trading, and settlement. The Bank of Canada reported improved data integrity and operational efficiency during the limited experiment.

However, the test also identified higher system complexity, liquidity costs, governance needs, and integration challenges. It reduced some settlement risks while creating new technology, audit, and fallback concerns. Canada tokenized deposits therefore enter development after earlier domestic testing provided practical infrastructure lessons.