At the end of October, Ottawa published draft rules for issuers of stablecoins pegged to the Canadian dollar. The document in the Canada Gazette opens a 60-day consultation period and is aimed at taking effect in the fall of 2027. The main innovations are a requirement for one hundred percent reserving, redemption within three business days with a fee of no more than one percent, and a complete ban on paying yield for simply holding the token.
Behind the dry wording lies an attempt to protect ordinary holders from the risks that have already manifested in the crypto industry. Reserves must be placed with Canadian custodians in separate accounts inaccessible to the issuer's creditors in the event of bankruptcy. A user will be able to exchange any volume of stablecoins for fiat without a minimum amount, and the maximum fee of one percent is intended to prevent excessive withholding during a mass outflow.
The regulator takes an especially strict approach to yield. Issuers are prohibited from paying interest or sharing income for the mere holding of the coin — even through third parties. At the same time, rewards for actual transactions remain permitted. This line shows that the authorities want to see stablecoins as a payment instrument, not as an alternative to deposits that already bear interest.
For Canadians, this means more predictable terms for transfers and for holding digital dollars. Instead of promises of high yield, they get a guarantee of rapid return of funds at a fixed price. However, for issuers and platforms, the one percent cap on the fee and the ban on passive yield may reduce the product's appeal compared with American or European analogues.
Ultimately, Canada is choosing a path of cautious integration of stablecoins into the traditional financial system. The rules protect the user from losses in the event of an issuer's collapse, but at the same time remove the incentive to simply keep the token "under the mattress." In the long term, this may make digital currencies more reliable, but less interesting for those seeking additional earnings on their savings.
