Canada's six largest banks have come together to explore a shared interbank tokenized deposit system that could allow Canadian dollars to move faster between financial institutions. The joint venture brings together Bank of Montreal, CIBC, National Bank, RBC, Scotiabank, and TD Bank Group, according to an announcement from the group dated September 22, 2026.

The banks plan to test transfers of tokenized deposits between participating Canadian financial institutions before connecting the system with other digital asset projects. They said the model could support faster, programmable payments available around the clock while keeping customer funds inside the regulated banking system. Programmability refers to payment rules or conditions encoded directly into the transfer itself, and continuous operation stands apart from conventional interbank transfers, which generally settle within business-day windows.

Interbank Tokenized Deposit Plan Takes Shape

The first phase will focus on moving tokenized deposits between participating banks, with additional Canadian lenders potentially joining at a later stage. Despite the scale of the collaboration, the banks have not committed to issuing a tokenized deposit, and they have not announced a launch date.

Tokenized deposits represent money that customers already hold at banks, a structure that sets them apart from stablecoins issued by crypto companies. If adopted, a shared network could allow banks to process payments 24 hours a day while retaining the controls and oversight that govern the existing banking system.

Banks Test Digital Payment Networks

The Canadian project follows similar work in other markets. A recent U.S. Bank stablecoin pilot used the Stellar blockchain to carry out a live cross-border payment between bank entities in North America and Europe. The trial showed how a traditional lender can use blockchain rails for settlement between its own entities across borders.

Closer to home, Canada has also tested tokenized settlement through Project Samara. In March, the Bank of Canada, RBC, and TD — two of the banks now exploring the shared deposit network — issued, traded, and settled a C$100 million bond using tokenized wholesale Canadian dollars on distributed-ledger infrastructure. The exercise demonstrated how regulated institutions can pair digital settlement with established financial controls and processes.

Tokenization Efforts Extend Across Markets

The new bank venture adds another route for Canadian-dollar activity on blockchain networks. It also places commercial banks directly alongside stablecoin issuers as both groups develop new digital payment and settlement systems.

Europe is moving on a related track. The European Central Bank recently introduced Pontes, a platform for tokenized asset settlement using central bank money. The platform connects distributed-ledger networks with the Eurosystem's existing TARGET payment infrastructure.

Canada is also building a domestic stablecoin market, adding to a growing set of digital Canadian-dollar options. In May, Shopify and National Bank of Canada — also among the six banks in the new venture — backed a regulated digital Canadian dollar. Meanwhile, Coinbase and Stablecore expanded digital asset services for community banks and credit unions in the United States.

Exploratory Project With No Confirmed Timeline

The six-bank effort remains exploratory. Its next steps will depend on testing, technical design, regulatory requirements, and whether the participating banks decide to move from trials to a common interbank tokenized deposit network.