Canada opens consultation on draft stablecoin rules, maintains ban on yields
Under the draft rules, non-bank stablecoin issuers must back tokens 1:1 with reserves held at qualified Canadian institutions and settle redemptions within three business days.
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Summary
- Canada opened a 60-day consultation, ending Dec. 23, on stablecoin rules that would prohibit issuers from paying interest while allowing transaction-based rewards.
- The proposed framework would require nonbank issuers to maintain reserves equal to their circulating tokens at qualified Canadian financial institutions and redeem stablecoins within three business days, with fees capped at 1%.
- The rules are expected to take effect in late 2027 as Canadian banks and regulated firms develop tokenized deposits and Canadian-dollar stablecoins.
