Overview
- OSFI finalized its 2027 crypto-asset capital and liquidity guideline on September 10 and said qualifying tokenized deposits can receive the same prudential treatment as traditional deposits when legal rights and risks are unchanged.
- Banks must consult their OSFI lead supervisors before launching tokenized-deposit products and remain fully responsible for legal enforceability, cyber defenses, and third-party tech under existing B-13 and B-10 guidance.
- OSFI requires tokenized deposits to be legally binding, redeemable in fiat at par, and tied to the issuing bank’s creditworthiness and said it may apply stricter liquidity rules when wallets, blockchains, or redemption mechanics add operational or liquidity risk.
- The guideline does not change Bank Act permissions or deposit-insurance rules and does not itself authorize specific token issuances, leaving statutory and insurance questions to be resolved through pilots and legal review.
- The decision follows global bank pilots and Basel guidance and could speed controlled industry testing for corporate payments and 24/7 settlement while raising risks that faster, programmable tokens could shorten deposit tenors and raise funding costs.