Canada's Big Six explore Canadian-dollar tokenized deposit system

Six of Canada's largest banks are exploring a Canadian-dollar tokenized deposit system designed to move money faster between financial institutions. TD Bank announced the project Tuesday. Bank of Montreal, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, Scotiabank and TD Bank Group form the joint venture. Its first phase focuses on moving tokenized deposits across participating banks. The joint statement said more banks could join later. The banks said the project has a longer-term goal of connecting with other emerging digital asset initiatives. They said the system could support faster, more efficient, programmable and around-the-clock payments for Canadian customers while keeping customer funds within the regulated banking system and preserving financial stability and regulatory oversight.