REGULATION | Canada Proposes Stablecoin Rules Requiring Full Reserves, One-to-One Redemption

Canada has opened a 60-day public consultation on proposed stablecoin regulations that would require non-bank issuers to register with the Bank of Canada, maintain fully backed reserves, and redeem tokens at face value, as the country prepares to establish a comprehensive framework for digital payments. The proposed rules, published in the Canada Gazette on October 24 2026, would require issuers to hold reserve assets denominated in the currency backing their stablecoins, offer redemption at a one-to-one rate, and return funds within three business days of a redemption request.