🌐 Canada’s "Big Six" banks launch tokenized deposits
Canada's six largest banks have officially teamed up to develop a system for tokenized deposits pegged to the Canadian dollar (CAD).
The joint venture includes the dominant institutions in the country's financial system: Bank of Montreal, CIBC, National Bank of Canada, Royal Bank of Canada (RBC), Scotiabank, and TD Bank Group. Other banks may join at a later stage.
Tokenized deposits will represent a digital form of actual client funds already held in the banks, unlike independent stablecoins issued by crypto companies. All liquidity will remain entirely within the strictly regulated banking system.
At launch, the project will focus on testing the instant transfer of tokens between participating banks. Implementing a unified system will enable 24/7 programmable payments, removing the limitations of traditional banking hours.
Canadian banks are reluctant to cede blockchain operations to private stablecoin issuers. This move aligns with a broader global trend where similar closed institutional networks are already being developed by JPMorgan, Citi, and Wells Fargo, as well as being tested by the Swift system for cross-border transfers.
The initiative is a logical continuation of the spring experiment "Project Samara," during which the Bank of Canada, in collaboration with RBC and TD, successfully issued and settled 100 million CAD (about $71 million) in bonds using distributed ledger technology.
The creation of a shared blockchain platform by major national banks indicates that the traditional fiat sector is gearing up for full integration with distributed ledger technologies to maintain institutional control over the next generation of financial flows.
#CRYPTO #TokenizedStockPlatformsCouldLaunchNextQuarter $USDC
Canada's six largest banks have officially teamed up to develop a system for tokenized deposits pegged to the Canadian dollar (CAD).
The joint venture includes the dominant institutions in the country's financial system: Bank of Montreal, CIBC, National Bank of Canada, Royal Bank of Canada (RBC), Scotiabank, and TD Bank Group. Other banks may join at a later stage.
Tokenized deposits will represent a digital form of actual client funds already held in the banks, unlike independent stablecoins issued by crypto companies. All liquidity will remain entirely within the strictly regulated banking system.
At launch, the project will focus on testing the instant transfer of tokens between participating banks. Implementing a unified system will enable 24/7 programmable payments, removing the limitations of traditional banking hours.
Canadian banks are reluctant to cede blockchain operations to private stablecoin issuers. This move aligns with a broader global trend where similar closed institutional networks are already being developed by JPMorgan, Citi, and Wells Fargo, as well as being tested by the Swift system for cross-border transfers.
The initiative is a logical continuation of the spring experiment "Project Samara," during which the Bank of Canada, in collaboration with RBC and TD, successfully issued and settled 100 million CAD (about $71 million) in bonds using distributed ledger technology.
The creation of a shared blockchain platform by major national banks indicates that the traditional fiat sector is gearing up for full integration with distributed ledger technologies to maintain institutional control over the next generation of financial flows.
#CRYPTO #TokenizedStockPlatformsCouldLaunchNextQuarter $USDC