Six Canadian Banks Explore Tokenized Canadian Dollar Deposits

Six major Canadian banks explore tokenized Canadian dollar deposits to enable faster, more efficient

Six of Canada’s largest banks are jointly exploring a system for tokenized Canadian dollar deposits, with the initial phase focused on moving digital representations of bank deposits more efficiently between financial institutions.

According to data shared by Coin Bureau on X, the six banks collectively manage C$6.24 trillion in deposits and are examining tokenized deposits as a way to support faster and programmable payments. The participating institutions are Bank of Montreal (BMO), Canadian Imperial Bank of Commerce (CIBC), National Bank of Canada, Royal Bank of Canada (RBC), Scotiabank and TD Bank Group.

The banks confirmed the initiative in a joint announcement on Sept. 22, saying they are exploring Canadian dollar-based digital money solutions beginning with tokenized deposits.

Banks Target Interbank Movement of Tokenized Deposits

The first phase of the project is designed to enable tokenized deposits to move efficiently across Canadian financial institutions. The banks said the broader objective is to support faster, more efficient and programmable payments while maintaining safety, stability and regulatory oversight.

Unlike a standalone cryptocurrency, a tokenized deposit represents a traditional bank deposit in digital form. The Canadian Press reported that these deposits can be recorded on distributed ledger technology and remain deposits issued by commercial banks.

The six institutions also said the initiative could eventually connect with other emerging digital-asset projects. They anticipate that additional deposit-taking institutions could join the effort at an appropriate stage.

Initiative Builds on Canada’s Tokenization Work

The project comes as Canadian financial institutions and policymakers continue to examine how tokenization and distributed ledger technology can be applied to payments and financial markets.

In May, the Bank of Canada joined the Bank for International Settlements’ Project Agorá, which is testing how tokenized commercial bank deposits and wholesale central bank money can be combined on a programmable platform for cross-border payments.

Canada’s central bank has also been involved in Project Samara, a real-world experiment involving the Bank of Canada, RBC, TD and Export Development Canada. The project examined the use of distributed ledger technology for bond issuance and settlement and resulted in Canada’s first tokenized bond issued using DLT.

The latest initiative therefore places tokenized deposits within a broader Canadian effort to test digital forms of financial assets and money while keeping them within the existing financial system.

The six banks said the project is intended to support responsible innovation and participation in the digital-money ecosystem. Its first stage remains focused on moving tokenized deposits between Canadian financial institutions, with broader connections to other digital-asset initiatives identified as a longer-term objective.

Writer: Victoria Hale
Technology & Blockchain Writer

Victoria Hale writes about blockchain technology, digital infrastructure, and the intersection of emerging technologies with finance. Her articles explore how new protocols and systems are shaping the evolving digital economy.

She prioritises clarity and accuracy when explaining technical developments to a general audience.