Canada drafts its stablecoin rulebook

What happened

Canada's Department of Finance published draft stablecoin regulations in the Canada Gazette on 24 October, opening a 60-day public consultation that closes on 23 December, CoinDesk and crypto.news reported. The government says the regulations are needed to bring the Stablecoin Act into force. The framework itself is expected to start in 2027, and CoinDesk puts it in late 2027.

What the draft says

The headline rule is a ban on yield. Issuers could not pay interest on stablecoins, including through third parties, and rewards linked to larger balances or longer holding periods would be prohibited. Rewards tied only to transactions would remain allowed. Non-bank issuers would have to hold reserves at least equal to the tokens in circulation, kept with qualified Canadian institutions such as banks, credit unions and trust companies, and separated from other assets. When a holder redeems, the fiat transfer must be initiated within three business days, with redemption fees capped at 1%.

Who supervises it

The Bank of Canada will register issuers, supervise them and enforce the rules, while the Department of Finance leads the policy work. It is the same central bank whose interest rate decision on Wednesday is one of Canada's most-searched topics this week. The framework covers domestic and foreign non-financial issuers that make fiat-backed stablecoins available to Canadians, whatever currency the coin tracks. Issuers may not claim that a stablecoin is legal tender, a deposit or insured like a deposit.

Background: what is a stablecoin?

If you have searched “what is a stablecoin”, the short answer is a crypto token designed to keep a steady value by tracking a currency such as the US dollar, backed by reserves. That is why rules focus on reserves and redemption. Canada's approach follows a busy month elsewhere: in the US, the Office of the Comptroller of the Currency issued its first final rule under the GENIUS Act on 21 October, so “us stablecoin” and “genius act” are still among the top niche searches there. CoinDesk also notes that Canada's six largest banks are exploring a Canadian-dollar tokenised settlement system.

Why it matters for payments

Clear reserve and redemption rules matter to anyone who uses stablecoins for payments or to move value across borders, including for remittances. A cap on redemption fees and a deadline for paying out make it easier to know what you get back. The yield ban, which the Canadian Bankers Association supports according to CoinDesk, also separates stablecoins used for payments from savings products. Holding a stablecoin in a crypto wallet is a different question from how it is issued, and these rules deal with the issuer.

What to watch next

Comments close on 23 December. Watch whether the final text keeps the transaction-reward exception, how it treats existing yield arrangements that provincial regulators have permitted, and when the Bank of Canada opens registration. Canada's choices will also be compared with the US and EU regimes as the 2027 start date approaches.

What it means for Odix Pay users

Odix Pay does not issue stablecoins. Where it is available in your country, you can top up your Odix Pay account with USDT or USDC, or add USDT or USDC in the app through our licensed partner, which carries out the transaction. To send money to bank accounts abroad, Odix Pay money transfer shows the fee and exchange rate before you confirm. Availability depends on your country, and fees are shown in the app. More stories in the Odix Pay newsroom.

Related guides — What are stablecoins? USDT and USDC explained · How to top up with USDT or USDC

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