The Globe and Mail reports in its Wednesday edition that Canada's six biggest banks are working together to develop tokenized deposits as part of an initiative meant to keep pace with global developments in digital money. The Globe's Alexandra Posadzki writes that tokenized deposits are digital representations of traditional bank deposits, recorded on a blockchain or a distributed ledger. The Big Six announced the initiative in a joint press release Tuesday. This follows the passing of Canada's Stablecoin Act, which received royal assent in March and created the regulatory framework, and similar developments south of the border. The largest U.S. banks are working to launch a tokenized deposit network next year, and JPMorgan has started offering a deposit token called JPM Coin to its institutional clients. The Canadian government has been pushing to strengthen the country's economic sovereignty in response to escalating tensions with the U.S., its largest trading partner. The first phase of the joint project announced Tuesday will involve moving tokenized deposits denominated in Canadian dollars between financial institutions. Experts said the technology can speed up bank-to-bank settlements by using a shared blockchain.