Canada opens 60-day consultation on draft stablecoin rules

Canada has opened a 60-day public consultation on draft stablecoin regulations that require non-bank issuers to back tokens 1:1 with reserves held at qualified Canadian financial institutions and settle redemptions within three business days. The proposal maintains a ban on yield payments on stablecoins, keeping such products out of the country's framework.

The framework is expected to take effect in late 2027. No further timetable was disclosed beyond the consultation period.

• The rules require reserves to sit with Canadian financial institutions.
• Yield-bearing stablecoins would remain prohibited.