Stablecoins· Regulation & supervision

Canada publishes draft Stablecoin Regulations: Bank of Canada registration, 1:1 reserves, three-day redemption, in force targeted for fall 2027

The Department of Finance Canada pre-published the proposed Stablecoin Regulations in the Canada Gazette, Part I on 24 October 2026.

Cover: generative artwork from topic and jurisdiction. Not a depiction of any institution or product.Primary source: Department of Finance Canada (Canada Gazette, Part I) (gazette.gc.ca)

cryptobanking.news Editorial · AI-assisted, source-verified24 October 2026T1RegulatorCanada

Key takeawaysFact

1The Department of Finance Canada pre-published the proposed Stablecoin Regulations in the Canada Gazette, Part I on 24 October 2026.
2They are needed to bring into force the Stablecoin Act, which received royal assent in March 2026, under which non-financial-institution issuers must register with the Bank of Canada, hold a 1:1 reserve in the reference currency and redeem at par.
3The draft limits reserves to high-quality liquid assets (demand deposits, government debt of three months or less, one-day reverse repos and qualifying money market funds), requires redemption within three business days, caps redemption fees at 1%, bans interest or yield tied to holding a stablecoin, and requires reserves to be held at a Canadian-incorporated qualified custodian.
4Related amendments bring stablecoin payment service providers under the Retail Payment Activities Act.

Stablecoins
Regulation

Executive summaryFact

The Department of Finance Canada pre-published the proposed Stablecoin Regulations in the Canada Gazette, Part I on 24 October 2026. They are needed to bring into force the Stablecoin Act, which received royal assent in March 2026, under which non-financial-institution issuers must register with the Bank of Canada, hold a 1:1 reserve in the reference currency and redeem at par. The draft limits reserves to high-quality liquid assets (demand deposits, government debt of three months or less, one-day reverse repos and qualifying money market funds), requires redemption within three business days, caps redemption fees at 1%, bans interest or yield tied to holding a stablecoin, and requires reserves to be held at a Canadian-incorporated qualified custodian. Related amendments bring stablecoin payment service providers under the Retail Payment Activities Act. Comments are open for 60 days.

Primary source: Department of Finance Canada (Canada Gazette, Part I) ↗

The intention is for the proposed Regulations to come into force in fall 2027.

— Department of Finance Canada (Canada Gazette, Part I), verbatimString-matched against the live page 2026-10-24

Key factsFact

Event: Proposed rule
Jurisdiction: Canada
Source: Department of Finance Canada (Canada Gazette, Part I)
Source tier: Tier 1 · Regulator / central bank
Product: Stablecoin issuance
Regulation: Stablecoin Act (Canada)

Who is affectedFact

Stablecoin issuers that are not prudentially regulated financial institutions, payment service providers using stablecoins, and Canadian financial institutions acting as reserve custodians.

Key datesFact

24 Oct 2026Proposed regulations published (Canada Gazette, Part I)

On the regulatory timeline

More from the sourceFact

“meaning it would not regulate banks; trust, loan or insurance companies; credit unions; or foreign financial institutions.”
Scope of the Stablecoin Act (RIAS)

“Issuers would further be required to hold reserve assets at a Canadian-incorporated qualified custodian.”
Reserve custody

“redemption fees would be capped at 1% of the redeemed amount.”
Redemption fee cap

Verbatim from Department of Finance Canada (Canada Gazette, Part I)✓ string-matched against the live page 2026-10-24

Why it matters for banksAnalysis

Banks are outside the Act's issuer regime, but Canadian-incorporated financial institutions would be the only eligible custodians of issuers' reserve assets, and the yield ban is explicitly meant to keep stablecoins from competing directly with bank deposits.

Editorial analysis based on the facts above and the sources below; not legal or investment advice.

What remains uncertain

Coming into force is set by order of the Governor in Council; fall 2027 is the stated intention, not a fixed date.

Sources and evidence

PrimaryDepartment of Finance Canada (Canada Gazette, Part I) ↗2026-10-24quote matched 2026-10-24
PrimaryBank of Canada: Stablecoins — Bank of Canada ↗Under the Stablecoin Act , we will regulate non-financial institutions that issue stablecoins to Canadians.

Evidence types: how we classify sources.

Evidence

Confidence: High Primary source (regulator / official record); quote string-matched against the live page.
Quote verified: 2026-10-24 19:42 UTC
Archived snapshot: Not archived yet
Source type: Primary Department of Finance Canada (Canada Gazette, Part I) ↗

Change log (1)

2026-10-24 Canada jurisdiction (16th page): 4 verified items — Finance Canada proposed Stablecoin Regulations (Canada Gazette I, 24 Oct 2026; in force targeted fall 2027, (20cf204)

Full evidence record · How we label confidence

AIAI-assisted: summary and analysis were drafted with AI from the primary source and are the editor’s responsibility. AI-drafted from the primary source; quote string-matched by scripts/verify.mjs. Methodology · Corrections · Report an error