We have providing book entry CDs for several years with great success. The CD receipt is similar to a CD with a disclosure below the amount indicating it is only a receipt. It is great not to have to worry about getting a "real" CD back into your hands for redemption or partial withdrawal.
We will provide a "real" CD to the handful of customers who won't have it any other way. We also utilize the "real" CDs if held as collateral on loans.
The method of documenting the CD deposit has no relation on certification of TIN as far as I know.