Overview
- The Department of Finance published the draft rules in the Canada Gazette on Oct. 24 and opened a 60-day consultation that runs to Dec. 23.
- Non-bank issuers would have to register with the Bank of Canada and keep reserves equal to circulating tokens in high-quality assets held in qualified Canadian custodians on a daily basis.
- Covered holders must be able to redeem at par with no minimum, issuers must complete redemptions within three business days, and fees would be capped at 1% with narrow exceptions for liquidity stress.
- The draft bans issuer-paid interest or yield tied to holding stablecoins while allowing transaction-based rewards, a change pushed by banks worried customers could move deposits into yield-bearing crypto products.
- The rules are designed to take effect in late 2027 and build on the Stablecoin Act passed in March 2026 while intersecting with banks' tokenized deposit projects and provincial securities rules, which could raise operational and compliance costs for crypto firms.