Canada Moves to Enforce Stablecoin Rules — Reserves, Redemptions, Oversight

Canada’s 2025 budget sets stablecoin regulation as a priority. It targets fiat-backed stablecoins with rules on sufficient reserves, redemption policies, and risk management. The plan aligns with the GENIUS Act US stablecoin law, which passed in July.

The document says payments should become faster, cheaper, and more secure for 41.7 million residents. However, it does not state when lawmakers will table the bill. The scope covers backing assets, redemption timelines, and protection of personal and financial data.

The proposal places stablecoin regulation Canada within a broader payments modernization agenda. It focuses on clear obligations for issuers and defined roles for supervisors. As a result, users would see consistent rules for custody, audits, and redemptions.

Bank of Canada oversight and the Retail Payment Activities Act

The budget assigns $10 million over 2026–2027 to the Bank of Canada for oversight. It then plans $5 million in annual costs after that period. The government will offset those costs from issuers regulated under the Retail Payment Activities Act.

This structure places day-to-day funding on regulated issuers. It also sets a stable basis for Bank of Canada oversight of operational, cyber, and data risks. Therefore, Canada 2025 budget stablecoins adds an ongoing supervisory layer rather than a temporary program.

The document still leaves legislative timing open. It frames the bill as one step in a multi-year modernization track. The next phases depend on Parliament and technical rulemaking across payment activities.

Institutional stablecoin adoption and market size

Global stablecoin supply stands near $309.1 billion. In April, the U.S. Treasury estimated the market could reach $2 trillion by 2028. These figures place stablecoin regulation Canada in a growing cross-border market.

Major payment brands continue to test or use stablecoin rails. Western Union, SWIFT, MoneyGram , and Zelle reported pilots or integrations in recent months. These efforts span remittances, interbank messaging, and retail transfers, which ties to institutional stablecoin adoption.

Industry reactions in Canada noted expected changes for users and firms. Coinbase Canada CEO Lucas Matheson told CBC the proposal would “change how Canadians interact with money and the internet forever.” Stand With Crypto Canada also highlighted the policy shift toward clear rules.

Canadian projects and CBDC Canada context

Domestic builders continue to develop local solutions. Tetra Digital raised $10 million to design a digital Canadian dollar. Backers include Shopify, Wealthsimple, and the National Bank of Canada, which signals enterprise interest in compliant rails.

The digital Canadian dollar effort targets settlement, auditing, and predictable redemption. The focus matches the Canada 2025 budget stablecoins plan on reserves and data safeguards. These priorities align with merchant use cases and fintech integrations.

CBDC Canada work remains paused. In September 2024, Governor Tiff Macklem said there was “not a compelling case to move forward” with a central bank digital currency. The budget now emphasizes stablecoin regulation Canada while the CBDC path stays under review.