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Big banks exploring Canadian dollar-based digital money with tokenized deposits. Daniel Johnson TORONTO - Canada's big banks are exploring the development of Canadian dollar-based digital money, starting with a tokenized deposits initiative. Tokenized deposits are traditional bank deposits recorded on a decentralized database or distributed ledger, such as a blockchain. The plan seeks to deliver faster, more efficient and programmable payments to Canadian customers while preserving safety, stability and effective regulatory oversight. It means Canadian dollars could be converted into tokens on blockchain for easier transfers, said Claire Célérier, Canada Research Chair in household finance at the University of Toronto's Rotman School of Management. "My understanding is that the six banks will share the same blockchain, and so it implies that transactions can be made instantaneously across wallets with tokens," she said. Bank of Montreal, CIBC, National Bank, Royal Bank, Scotiabank and TD Bank are taking a collaborative approach to the project. The tokens would be issued by commercial banks and from a legal perspective, depositors can treat them the same as traditional bank deposits. The banks say the first phase aims to move tokenized deposits between Canadian financial institutions. "It's really exploratory now. I think what they're saying is that they're willing to work together to develop the technology," Célérier said. She said the potential capabilities would be of particular benefit to large companies or institutional investors, allowing them to complete "more sophisticated transactions." "What I expect is that these tokenized dollars will be mostly used by large companies and so on who have accounts across these Canadian banks, and it will be used to move large amounts of money," she said. Cristian Bravo, professor and Canada Research Chair in banking and insurance analytics at Western University, said the potential change could allow large producers to settle accounts far faster than their typical 30-day window. "If you have an instant settlement, you're closing that gap and closing that inefficiency in the market. And the fact that you have the money when you fulfil the contract, that can help reduce dependency on working capital and mobilize that capital faster," he said. But Bravo said that due to the lack of historical examples, it is not clear how much of an effect the move could have on the bottom lines of companies or institutional investors that use it. Bravo said it is also notable that digital money is not the same as cryptocurrency, but rather a "digital ledger to move deposits in a very quick, instant way."

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St. Paul's Summit Brewing Company faces foreclosure. One of Minnesota's largest brewers could lose its St. Paul brewery to foreclosure after its lender sued them to collect more than $8 million worth of unpaid debt. In a lawsuit filed last week, BMO Bank alleges Summit Brewing Company missed a loan payment deadline at the end of last year. The bank then agreed to a forbearance period - holding off trying to collect the loan - until July 31. But BMO alleges in court filings that Summit indicated in a June letter that it still didn't have the ability to repay the loan, and that its "liquidity position and operational flexibility continue to deteriorate." BMO wants a judge to appoint a receiver who could "take possession of, manage, operate, and property" belonging to Summit, according to the lawsuit. In a statement to MPR News, Summit CEO Brandon Bland said they will continue to run their day-to-day operations during the proceedings, but he acknowledged the brewery is facing financial struggles. "Our Board and management team have made substantial efforts over many months to chart a different course for this company," Bland said. "This reflects the difficult capital environment the entire craft brewing industry is navigating, not a reflection of the strength of our brand, our people or our operating model." Summit said its company leaders have worked with outside advisors over the course of the last year to find alternative paths forward. "Despite these substantial efforts, the Company and BMO were unable to reach a resolution, and BMO has elected to proceed with the foreclosure action, including its request for the appointment of a general receiver," Summit said in the statement. Bland said they'll continue to look at every option available to them as the process moves forward. No court hearings have been scheduled in the case. Dear reader,. When our communities are navigating uncertainty, staying informed matters more than ever. At MPR News, we're committed to keeping Minnesotans informed and involved, curious and connected - and Minnesota Today is one way we do that. Getting these updates in your inbox helps you stay informed with trusted reporting and thoughtful context from across Minnesota.