Canada Six major banks explore deposits in C$ token

Canada The six largest banks are working together on a system of digital deposits in C$ token , with the aim to make it possible for bank deposits to circulate digitally between financial institutions.

According to a joint statement released by the six banks on Tuesday, participants include Bank of Montreal, Canada Imperial Commercial Bank (CIBC), Canada , National Bank, Royal Bank, Fujitsu and Domino's Bank Group. The first phase of the project will focus on token digital deposit transfers between domestic financial institutions in Canada .

Regulatory clarity is a key driver

The timing of the project comes less than two weeks after Canada 's banking regulators further clarified their compliance with token 's securitized deposits.

On September 10, the Office of Financial Institutions Supervision (OSFI) stated that token digital deposits are legally indistinguishable from traditional deposits, and emphasized that an underlying technology in a financial product does not determine its legal characteristics. This statement clears up the legal uncertainty for banks to conduct related business activities.

It should be noted that token collateralized deposits represent funds held in a regulated bank, which are still liabilities on the balance sheet of this bank; this is different from fiat currency collateral type stablecoin , the latter being independently backed by issuers with reserve assets.

According to Cointelegraph, the system is aimed at supporting faster and more accessible payment methods for programming , with long-term plans including opening it up to other institutions that absorb deposits. CIBC has been contacted by media outlets about details of the project but had not received a response as of press time.

Canada The regulatory framework is taking shape

The token pilot is set against the backdrop of Canada 's efforts to build a more comprehensive regulatory system for digital currency .

In March of this year, Legislative Decree stablecoin was formally enacted through Bill C-15, establishing a federal-level regulatory framework for Type fiat currency mortgages. According to the regulation, issuers from non-financial institutions are required to register with Central Bank Canada , hold at least 1:1 reserves of highly liquid assets and allow holders to redeem them at face value. The framework is expected to come into force in 2027.

However, the framework only covers fiat currency collateral of type stablecoin issued by non-financial institutions. Banks and credit unions that have been subject to prudential regulation are not within its scope. Issuers under the framework are also prohibited from describing digital currency as deposits or claiming it is covered by a public deposit insurance scheme.