Canada’s OSFI allows tokenized deposits, aligning with traditional banking

Canada’s Office of the Superintendent of Financial Institutions (OSFI) has allowed regulated banks to issue tokenized deposits, bringing blockchain-based representations of fiat deposits into the traditional banking framework. The move signals growing regulatory acceptance of tokenization while keeping such instruments subject to existing prudential and banking controls. For Bitcoin, it strengthens the broader institutional adoption of blockchain infrastructure, but may also increase competition from regulated digital forms of bank money.