Canada Drafts Stablecoin Rules With Full Reserves, Fast Redemptions and No Yield
Ottawa has opened a 60-day consultation on draft rules for stablecoin issuers. The rules would require one-to-one reserves, fast redemption, and fees capped at 1%, while keeping the ban on paying interest to holders. For traders, the draft shows how Canada may tighten stablecoin operations and limit how these tokens can earn returns.
Why it matters
- Issuers would need one-to-one reserves backing their stablecoins.
- Holders would need to be able to redeem quickly.
- Redemption fees would be capped at 1%.
What to watch next
Watch for the final rules after the 60-day consultation, since any changes to reserves, redemption, or the yield ban could affect stablecoin trading.
