Canada’s Major Banks Collaborate on Tokenized Deposit System
- RBC, TD, BMO, Scotiabank, CIBC, and National Bank plan a joint Canadian-dollar tokenized deposit infrastructure.
- The initial phase focuses on inter-bank transfers rather than consumer wallets.
- This initiative is separate from the Bank of Canada’s digital-dollar consultation, which saw low public interest.
- Scotiabank and TD are part of a group building a U.S. dollar stablecoin network.
- BMO operates a tokenized cash platform with CME Group and Google Cloud.
Canada’s largest banks are developing a system for tokenized deposits to improve transaction speed and efficiency between banks using digital tokens instead of traditional methods. This project aims to enhance the current banking infrastructure without introducing new cryptocurrencies or central bank digital currencies (CBDCs).
The collaboration among Canada’s top financial institutions highlights their commitment to modernizing payment systems while maintaining security and competitiveness in the banking sector.Source)
