- OSFI ruled that tokenized deposits share the same legal status as traditional funds.
- It still mandates strict adherence to tech, cyber, and third-party risk rules for banks.
- OSFI released its 2027 crypto capital framework alongside the tokenized deposit ruling.
Canada’s banking regulator has sent one of the strongest signals yet that blockchain-based bank money can fit into the current banking system.
The Office of the Superintendent of Financial Institutions (OSFI) said tokenized deposits aren’t legally different from regular deposits, so the tech used to represent them doesn’t create a whole new legal category on its own.
In a September 10 statement, OSFI said it focuses on what a financial product is, rather than how it’s built or delivered. Therefore, a bank deposit doesn’t turn into a different kind of financial product just because it’s tracked as tokens on a blockchain.
That distinction could clear a big obstacle for Canadian banks wanting to experiment with blockchain-based payments and treasury tools.
However, this isn’t a free pass for every blockchain product, as OSFI said federally regulated banks still have to follow all relevant laws and rules, including its requirements around technology risk, cyber risk, and third-party risk. Banks should also check in with their OSFI supervisor before launching anything new.
Why Tokenized Deposits Matter
Tokenized deposits are basically regular bank deposits that are represented digitally on a blockchain or similar ledger. Unlike many stablecoins, they still represent a direct claim on the bank that issued them.
That could make tokenized deposits particularly interesting for institutional payments since they could allow bank money to move on programmable rails, potentially allowing faster settlement and easier transactions with other tokenized assets.
In fact, the Bank of Canada is already heading in this direction. Back in May, it joined Project Agorá, a BIS (Bank for International Settlements) initiative that’s testing a shared ledger linking tokenized bank deposits with wholesale central-bank money for cross-border payments.
The Larger Canadian Shift
OSFI’s announcement comes alongside the agency’s finalized 2027 crypto-asset capital framework, which makes specific tweaks to how banks manage cryptocurrency risk while keeping safety measures intact.
The framework kicks in on November 1, 2026, or January 1, 2027, depending on when an institution’s fiscal year starts.
Taken together, these updates and announcements suggest that Canada is trying to build blockchain right into regulated finance, instead of forcing banks to treat the technology as completely separate from traditional banking.
Related: Coinbase Expands Regulated Futures Access in Canada
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