Canada's six major banks collaborate to test tokenized CAD deposits

Six major Canadian banks, including Royal Bank of Canada (RBC), TD Bank (TD), and Bank of Montreal (BMO), have announced a joint initiative to explore tokenized Canadian dollar deposits. The project aims to facilitate efficient transfers between financial institutions and integrate with broader digital asset systems. Unlike stablecoins, these tokenized deposits remain legal bank liabilities. The initiative focuses on enhancing payment speed, efficiency, and programmability, positioning traditional banks to compete in the digital settlement market alongside private stablecoins.