Non-bank stablecoin issuers would register with the Bank of Canada, hold 1:1 reserves in Canada and redeem within three days, with no yield allowed.
Mon 26 Oct 2026 · 10:26 EDT · 2 min read
In Regulation
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Canada has opened a 60-day public consultation on draft regulations for fiat-backed stablecoins, keeping in place a ban on paying holders interest, CoinDesk reported.
The Department of Finance published the proposal in the Canada Gazette on Oct. 24, and comments are due by Dec. 23.
The regulations are needed to bring the Stablecoin Act, passed through Bill C-15 earlier this year, into force. Non-bank issuers would register with the Bank of Canada and hold reserves equal to the value of their circulating tokens.
Those reserves must sit with qualified Canadian financial institutions such as banks, credit unions and trust companies.
Redemption within three days, fees capped at 1%
Holders must be able to redeem stablecoins at par within three business days, with fees capped at 1%. Issuers would be barred from paying interest, including through third parties, to encourage holding the tokens; rewards tied to transactions would still be permitted.
Banks and other prudentially regulated institutions remain under existing regimes. The framework is expected to take effect in late 2027.
The Canadian Bankers Association has said it “firmly supports” the act’s prohibition on yield, both direct and indirect.
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