Wire · operational-macro
Canada opens 60-day stablecoin consultation while keeping yield ban
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Fusion42 · 26 October 2026 · Fusion42 review
Canada has opened a 60-day consultation on stablecoin regulations that retain a ban on issuer-paid yield and require reserves to be held by qualified Canadian financial institutions, with redemption fees capped at 1% and redemption completed within three business days. The framework covers both domestic and foreign non-financial issuers providing fiat-backed stablecoins to Canadians, aligning with a similar US regulatory approach effective January 2027.
This Wire brief sits within Fusion42's coverage of Fintech.
◆ ◆ The Wire takeaway
Canadian stablecoin issuers must now focus on compliance with strict reserve custody and yield restrictions while preparing for cross-border regulatory consistency with the US. You must review your issuance and reward models to avoid issuer-paid yields and ensure reserves sit with qualified Canadian institutions.
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1 source · 26 Oct 2026
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