Canada’s Big Six banks begin testing tokenized CAD deposits

Canada’s six largest banks – Bank of Montreal, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, Scotiabank and TD Bank – announced a joint venture to develop a shared tokenized deposit system denominated in Canadian dollars.

Phase 1: Inter‑bank tokenized deposit transfers

The initial phase will test the movement of digital representations of existing bank deposits between the participating institutions. The goal is to demonstrate efficient, 24/7 transfers that retain regulatory oversight.

Long‑term vision

After the pilot, the banks plan to explore connections to broader digital‑asset initiatives, potentially enabling programmable payments and integration with other tokenized‑asset platforms.

Regulatory context

Tokenized deposits differ from stablecoins issued by crypto firms; they are digital versions of funds already held at a bank, keeping customer assets within the traditional banking framework. The project aligns with Canada’s wider efforts in tokenized finance, including the Bank of Canada’s Project Samara and a regulated digital‑CAD initiative backed by Shopify and the National Bank of Canada.

Industry landscape

Similar inter‑bank tokenized‑deposit networks are being explored in the United States, while global payment networks such as SWIFT are testing 24/7 tokenized settlements across multiple continents.