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Canada's six largest banks are exploring tokenized deposits for interbank payments, a move made possible after regulators recently clarified how such digital assets should be treated.
The short version is that major financial institutions are testing a new method for moving money between banks, using digital representations of the Canadian dollar rather than traditional ledger entries.
This development occurred just weeks after regulatory guidance was issued, creating a clear path for these explorations to proceed.
What Tokenized Deposits Mean in Practice In plain terms, a tokenized deposit is a digital record of a bank balance that exists on a shared digital ledger, often referred to as a blockchain.
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