Canada Gives Tokenized Deposits Legal Status Same As Bank Deposits

Canada has just cleared a major hurdle for blockchain-based banking. The country now says tokenized deposits have the same legal status as traditional bank deposits, opening the door for banks to offer more digital deposit products.

The move also gives federally regulated institutions clearer rules while keeping existing banking and risk standards in place

Canada Says Tokenized Deposits Are Not Legally Different

Canada’s Office of the Superintendent of Financial Institutions (OSFI) issued its statement on September 10, 2026, confirming that the technology used to represent a deposit does not change its legal nature.

OSFI said, “Tokenized deposits are, for example, not legally distinct from traditional deposits.” 

The regulator said its approach is technology-neutral, meaning it focuses on what a financial product actually is rather than whether it uses blockchain or another system.

This means a deposit recorded through a blockchain can remain a normal bank deposit and a liability of the issuing financial institution.

Existing Banking Rules Still Apply

The clarification does not give banks a free pass to launch tokenized deposits without oversight.

OSFI said federally regulated institutions must continue following existing laws and regulatory requirements when developing these products. That includes technology and cyber-risk rules under B-13 and third-party risk requirements under B-10.

Banks are also expected to speak with their OSFI lead supervisors before launching new or unusual products and can seek legal advice where needed.

The decision could give Canadian banks more room to test blockchain-based payments, settlement and deposit products without creating a separate legal category for every new technology.

Tokenized Deposits Are Different From Stablecoins

The new rules also clarify that tokenized bank deposits differ from stablecoins.

A tokenized deposit is a digital version of a normal bank deposit. It represents a direct claim on the issuing bank. Its value and legal status come from that bank deposit, not from the blockchain.

OSFI also recognizes tokenized bank claims when they are legally valid, can be exchanged for regular fiat money at the same value, and are backed by the issuing bank.