Canada’s Draft Stablecoin Rules Cap Redemption Fees at 1% and Ban Yield
Summary
Canada proposed stablecoin regulations requiring issuers to back every token one-to-one with cash and short-term government debt, held in segregated accounts with Canadian custodians. Holders must be able to redeem tokens within three business days, with fees capped at 1%. Issuers would be barred from paying yield for holding tokens, including indirectly, though usage-based rewards remain permitted. The Bank of Canada would register and supervise issuers; serious violations could bring fines of up to C$10 million. The draft is open for 60 days of public comment, with rules expected to take effect in fall 2027.
