Canada's top banking regulator, OSFI, just dropped a dedicated clarification on tokenized deposits and published its final capital and liquidity rules for crypto asset exposures. Bottom line: a tokenized bank deposit is legally just a regular deposit. That means banks can roll out deposit products on blockchain rails without needing a new regulatory framework. All the usual banking requirements still apply, including managing tech, operational, and cyber risks.

What Changes for Deposits

Tokenized deposits now have the same legal status as traditional bank deposits. This clears up regulatory gray areas and opens the door for banks to use blockchain as the backend for issuing and tracking deposits—no special regime needed.

Capital and Risk Calculations for Crypto Assets

OSFI clarified its approach to risk: banks will be able to count some hedging positions on regulated exchanges when calculating crypto asset risk. Derivatives created through client clearing will be excluded from the cap on the riskiest crypto assets.

Tech and Cyber Risk Requirements

The full suite of requirements around tech, operational, and cyber risk management still stands. Banks will need to keep tight control over their infrastructure if they're issuing or tracking deposit products on a blockchain.