Innovative deposit products and CDIC deposit insurance eligibility
Innovative deposit products
Advances in technology are enabling innovation in deposit-taking activities of financial institutions. As new products emerge, questions about their eligibility for CDIC deposit protection can come up.
Eligibility for deposit insurance
CDIC assesses deposit insurance eligibility on a case-by-case basis, based on the requirements in the Canada Deposit Insurance Corporation Act, including the legal definition of a deposit.
Depending on how they are designed and offered to the public, innovative deposit products, including tokenized deposits, may be eligible for CDIC deposit protection.
Early engagement with CDIC
Member institutions developing innovative deposit products are encouraged to contact CDIC early in the development process to discuss deposit insurance eligibility. This includes the extent of protection that may be available if deposits are made by an intermediary.
Compliance requirements
Member institutions must comply with CDIC’s by-laws when they offer deposit products, including:
- Data and System Requirements By-law
- Deposit Insurance Information By-law
- Co-owned and Trust Deposit Disclosure By-law