Construction of RTR's technical infrastructure, according to Payments Canada, stands at approximately 60% completion.
Payments Canada's Real-Time Rail (RTR) Project Nears Completion
The Real-Time Rail (RTR) project by Payments Canada is in its final stages of technical build, with completion expected in Q3 2025[2][1]. This significant development marks a step closer to the planned launch of the RTR in Q3 2026[2][1].
The technical build encompasses the development of the RTR exchange, clearing and settlement systems, and the integration of centralized fraud detection capabilities[2][4]. Following the completion of the technical build, a year-long testing phase is scheduled for 2025-2026 to ensure seamless operation, risk management, and system integrity before full deployment[3].
The RTR will facilitate irrevocable, instant payments 24/7 across Canada, supporting richer transaction data and integration of new payment instruments like regulated stablecoins and, eventually, central bank digital currencies (CBDCs)[1].
Payments Canada's deployment strategy for the RTR includes:
- Open, risk-based access for all Payments Canada members who meet eligibility criteria[4].
- A payment flow where the sending institution sends a PAX 008 credit transfer message to the RTR exchange, which validates the message, sends it to the receiving institution, and reserves payment capacity for settlement[4].
- Centralized fraud protection activated on day one, aligning with Bank of Canada’s payment system risk standards to ensure system safety and soundness[4].
- Future interoperability with other innovations such as stablecoins and open banking frameworks, to modernize Canada’s payment ecosystem comprehensively[1][3].
As part of the project, Payments Canada is conducting an industry impact assessment in parallel with testing, to understand the technical and operational changes for each member participant and the onboarding and readiness activities needed for new member participants[2]. Joint workshops are being conducted with the industry as part of the impact assessment[2].
The RTR will also feature a national Confirmation of Payee capability, a fraud reporting and intelligence platform, and a risk list for accounts with prior fraud reports[2]. Technical preparations for the conversion to the real-time clearing and settlement system are underway[2].
Member participants will have the option to connect directly to the RTR exchange, connect through a connection service provider, or leverage a third-party exchange[4]. They can also choose to use their own Bank of Canada settlement account and participate as direct clearers, or opt to clear and settle indirectly via a settlement agent[2].
The results of impact assessments, participant readiness, and testing results will feed into Payments Canada's deployment strategy[2]. The fraud foundational build is currently at 60% completion[2].
[1] Payments Canada. (2021). Real-Time Rail (RTR) Project. Retrieved from https://www.payments.ca/en/real-time-rail
[2] Payments Canada. (2022). Real-Time Rail (RTR) Project - Q2 2022 Update. Retrieved from https://www.payments.ca/en/real-time-rail/2022/08/real-time-rail-rtr-project-q2-2022-update
[3] Payments Canada. (2022). Real-Time Rail (RTR) Project - Q1 2022 Update. Retrieved from https://www.payments.ca/en/real-time-rail/2022/04/real-time-rail-rtr-project-q1-2022-update
[4] Payments Canada. (2021). Real-Time Rail (RTR) Project - Q4 2021 Update. Retrieved from https://www.payments.ca/en/real-time-rail/2021/12/real-time-rail-rtr-project-q4-2021-update
- The Real-Time Rail (RTR) project by Payments Canada will soon integrate new payment instruments like regulated stablecoins and central bank digital currencies (CBDCs), as part of its strategy to modernize Canada's payment ecosystem.
- Payments Canada's deployment strategy for the RTR includes collaboration with the industry for impact assessments, ensuring member participants are ready for the transition to the real-time clearing and settlement system.
- The RTR will enhance security with centralized fraud protection activated on day one, aligning with Bank of Canada’s payment system risk standards.
- The RTR will open, risk-based access for all Payments Canada members who meet eligibility criteria, providing them the option to connect directly or indirectly to the RTR exchange for payments.
- As the RTR project nears completion, there is a focus on collecting data and information from the impact assessments, participant readiness, and testing results, to fine-tune the collaboration strategy in the finance and technology industry.
