Canada · Tokenization · CoinDesk
Canada's 'Big Six' banks to launch interbank tokenized deposit initiative
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Six of Canada's largest banks are exploring a Canadian-dollar tokenized deposit system designed to move money faster between financial institutions and eventually connect with other digital asset initiatives, TD Bank announced Tuesday.
Key facts
- Swift also recently began testing tokenized deposits for 24/7 cross-border payments with banks across six continents
- Bank of Montreal, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, Scotiabank and TD Bank Group form the joint venture, whose first phase focuses on moving tokenized
- As stablecoins move into regulated finance, APAC is becoming a key proving ground
- The participating banks are collectively known as Canada’s Big Six: the dominant group in the country’s banking system, with operations spanning consumer banking, commercial lending, capital markets
Summary
Canada’s six largest banks are exploring a shared Canadian-dollar tokenized deposit system to move money faster among financial institutions. The project’s first phase will test transfers of digital representations of bank deposits, with a longer-term goal of connecting to other digital asset initiatives. The banks say the system could support faster, programmable, around-the-clock payments while keeping customer funds within the regulated banking system. Bank of Montreal, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, Scotiabank and TD Bank Group form the joint venture, whose first phase focuses on moving tokenized deposits across participating banks.