Big Banks Launch Collaborative Effort to Move Tokenized Deposits Between Institutions
The banks say the system could support 24/7 programmable payments and keep customer funds inside the regulated banking system.
- On Tuesday, Canada's six largest banks—Royal Bank of Canada, Toronto-Dominion Bank, Bank of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, and National Bank of Canada—launched a collaborative project exploring Canadian dollar-based tokenized deposits.
- The collaborative effort seeks to deliver faster, programmable payments while preserving safety and effective regulatory oversight, ensuring Canada's payments infrastructure remains secure and competitive as digital money evolves globally.
- OSFI stated earlier this month that tokenized deposits are permissible under existing banking legislation, noting these digital assets are "not legally distinct from traditional deposits."
- The Canadian project follows plans announced earlier this year for a consortium of major U.S. banks to connect tokenized deposits, aiming to counter growing competition from stablecoins.
- Prime Minister Mark Carney is pushing to strengthen Canada's domestic economy and reduce reliance on U.S. markets amid heightened trade tensions, positioning this initiative within broader economic strategy.
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46 Articles
UK major banks make first interbank payments with tokenised deposits
Britain's largest banks have completed what the industry describes as the first transactions anywhere using tokenised deposits to move money between one another, a milestone for a blockchain-based form of bank money that the Bank of England favours over privately issued stablecoins.
Britain's largest banks have completed the world's first interbank transactions using tokenized deposits, a major milestone in the development of a blockchain-based version of commercial bank money. The solution is being touted by its proponents as a safer alternative to stablecoins, Reuters reported. Similar topics will be discussed at Portfolio's Banking Technology event on November 10. Register and get details here!
UK banks make interbank deals with tokenised deposits
Britain's biggest banks have completed the world's first transactions using tokenised deposits to move money between themselves, a boost for a blockchain-based version of commercial bank money that proponents say offers a safer alternative to stablecoins.
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