The federal fiat-pegged rule proposals would prohibit stablecoin issuers from paying interest, including through third parties, to encourage customers to hold their tokens. It would still allow rewards linked to transactions.
Under the draft rules, non-bank stablecoin issuers would have to hold reserves equal to the value of their circulating fiat-pegged tokens. They would have to place those reserves with qualified Canadian financial institutions, including banks, credit unions and trust companies.
Customers would have to be able to exchange their stablecoins for regular currency within three business days, with redemption fees capped at 1%.
The stablecoin framework is expected to come into effect toward the end of 2027.
Late last month, Canada’s six largest banks said they were exploring a Canadian-dollar tokenized system to move money faster among traditional financial institutions.
That announcement followed a Sept. 10 statement from Canada’s banking regulator, the Office of the Superintendent of Financial Institutions, that tokenized deposits are “not legally distinct from traditional deposits.”
Tetra Trust Company, which was Canada’s first regulated digital asset custodian, rolled out CADD, a Canadian-dollar stablecoin approved by Alberta Treasury Board and Finance, in May.
