Canada consults on draft stablecoin rules with 1:1 reserve backing
In short
Canada has opened a consultation on draft stablecoin rules. The draft says non-bank issuers must hold 1:1 reserves at qualified Canadian institutions and must settle redemptions within three business days.
The rules could tighten how stablecoins are issued and redeemed in Canada. It is not stated when the consultation will end or when the rules might start.
What the reporting says
Canada opened consultation on draft stablecoin rules, and the proposal says non-bank issuers must back tokens 1:1 with reserves held at qualified Canadian institutions. The draft also requires redemptions to be settled within three business days and keeps a ban on yields. The reporting does not say when the consultation ends or when any final rules would take effect.
Why it matters
Canada’s draft stablecoin framework would require non-bank issuers to fully back tokens with reserves at qualified Canadian institutions and process redemptions within three business days, while keeping a ban on yields. The proposal is relevant to crypto firms, payment providers, and investors exposed to stablecoin products. The reporting does not provide a consultation deadline or final implementation date.