Canadian Regulator Clarifies Legal Status of Tokenized Deposits

The Office of the Superintendent of Financial Institutions (OSFI) in Canada stated that tokenized deposits share the same legal status as traditional bank deposits, regardless of the underlying technology. Financial institutions may explore tokenized deposits under existing regulatory frameworks without needing new rules, provided they comply with current financial laws and maintain responsibility for third-party services. OSFI advises institutions to consult with supervisors and seek legal counsel before launching such products.