Canada · Ottawa, Ontario · Elections hub
Canada publishes draft stablecoin rules: 1:1 reserves, redemption in 3 business days and no interest
In brief
The federal Department of Finance published proposed Stablecoin Regulations in the Canada Gazette, Part I, on October 24, 2026. The rules would put into practice the Stablecoin Act, which received royal assent in March 2026. Companies issuing stablecoins, digital tokens designed to hold a steady value such as one Canadian or US dollar, would have to register with the Bank of Canada, keep reserves equal to every coin in circulation and let holders cash out at full value within three business days.
What the draft rules say
Issuers would have to hold reserves at least equal to the stablecoins they have issued, in high-quality liquid assets such as demand deposits, government debt maturing within three months, overnight reverse repurchase agreements and eligible money market funds, kept with a qualified custodian incorporated in Canada. Holders could redeem coins at par within three business days, with no minimum amount, and redemption fees would be capped at 1%, with seven days' notice before any fee increase. The government notes that current market fees are around 0.1%. Issuers could not pay interest or yield just for holding a stablecoin, although rewards linked to using it would be allowed, and they could not present a stablecoin as legal tender, a bank deposit or an insured product. Complaints would need a response within 7 days and a resolution within 30, issuers would file monthly reports checked by an accountant, and the most serious violations could bring penalties of up to $10 million.
Who it affects and what comes next
The government expects the rules to apply to about five issuers at first, giving examples such as Stablecorp's QCAD, Loon's CADC and Circle's USDC, plus about 30 payment service providers that would come under the Retail Payment Activities Act when they handle stablecoins. The public has 60 days to comment, and the regulations are planned to take effect in fall 2027.
VSH take: Clear rules on reserves and redemption are what ordinary users need before trusting any digital dollar, and the 1% fee cap and no-interest rule make it clear these are payment tools, not savings accounts. If you hold or send crypto, compare real costs first with our currency converter, and see how ordinary savings grow with the compound interest calculator. Students preparing for finance or economics exams can use our exam guides and study pages, and travellers can compare fares on the flights hub.
ViralScopeHub is an independent news summary site and is not affiliated with the Government of Canada, the Department of Finance, the Bank of Canada or any stablecoin issuer. This is general information, not financial advice, and the proposed rules may change after consultation. The coin photo is an archive image, not a stablecoin.
Why it matters
Stablecoins are increasingly used for payments and remittances, and these rules would set Canada's first detailed protections for people who hold them.
People also ask
What is a stablecoin?
A digital token designed to keep a steady value, usually one unit of a currency such as the Canadian or US dollar, backed by reserves.
When were the draft rules published?
In the Canada Gazette, Part I, on October 24, 2026, with a 60-day comment period.
Could stablecoin holders earn interest?
No. The draft rules would ban paying interest or yield just for holding a stablecoin, though rewards tied to using it would be allowed.
When would the rules take effect?
The government plans for them to come into force in fall 2027.
Related free tools: Currency Converter, Compound Interest Calculator
Sources
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