Canada is preparing to roll out its first comprehensive framework for fiat-backed stablecoins under the 2025 federal budget, closely mirroring the regulatory path taken by the United States earlier this year.
According to Tuesday’s budget release, the legislation will require stablecoin issuers to maintain full reserves, establish clear redemption policies, and implement robust risk management systems, including safeguards for personal and financial data.
Annual supervision costs of about $5 million will later be recovered from issuers regulated under the Retail Payment Activities Act. The move comes just months after the US passed its GENIUS Act in July, a landmark stablecoin bill that heightened global regulatory momentum.
The Bank of Canada is expected to spend $10 million over two years, starting in fiscal year 2026–2027, to oversee the rollout.
Although the government has yet to specify when the bill will be introduced, the plan forms part of a wider effort to make digital transactions faster, cheaper, and more secure for Canada’s 41.7 million residents. Coinbase Canada CEO Lucas Matheson welcomed the proposal, telling CBC that it could “change how Canadians interact with money and the internet forever.”
Ottawa’s response signals its intent to modernize payment systems while keeping pace with international developments.
Among Canada’s emerging players is Tetra Digital, which recently raised $10 million from Shopify, Wealthsimple, and the National Bank of Canada to develop a Canadian dollar-backed stablecoin. The push comes as the Bank of Canada shelved its central bank digital currency (CBDC) plans in September 2024, citing “no compelling case” to move forward.
The global stablecoin market is currently valued at $309.1 billion, with the US Treasury projecting it could reach $2 trillion by 2028.
