Canada proposes direct stablecoin cash-outs for small holders with a 1% fee cap
Canada’s Oct. 24 proposal would require covered stablecoin issuers to redeem tokens at par within three business days, accept requests regardless of balance size, and charge no more than a 1% fee. Issuers could impose daily limits only if reserve-market liquidity prevents them from meeting all requests. Rules would require advance notice of fee changes and disclosures about payment methods and limits. Coverage depends on purchaser location, issuer identity and exemptions, so the proposal does not establish that Circle or USDC would be covered. Circle currently limits direct USDC redemption to eligible Circle Mint customers, generally institutions. The Stablecoin Act’s core provisions are not yet in force; implementation is targeted for fall 2027, following consultation and final rules. Reserves would be segregated and backed by qualifying liquid assets, but tokens would not be insured bank deposits.
