Canada’s new budget introduces federal stablecoin rules, aligning with U.S. policy and positioning the country as a global leader in digital asset oversight.
(Photo of Tom Carnegie on Unsplash)
Posted November 5, 2025 at 9:03 am EST.
Canada’s federal government announced plans to regulate fiat-backed stablecoins through legislation outlined in its 2025 budget released Tuesday. The framework follows the U.S. GENIUS Act passed in July, requiring issuers to maintain sufficient reserves and establish redemption policies.
Stablecoin operators must implement risk management systems protecting personal and financial data under the proposed rules. The Bank of Canada will allocate $10 million over two years starting in fiscal 2026-2027, with $5 million in annual costs afterward offset by regulated issuers under the Retail Payment Activities Act.
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Coinbase Canada CEO Lucas Matheson told CBC the regulation would change how Canadians interact with money and the internet forever. The stablecoin market currently stands at $309.1 billion, with the U.S. Treasury projecting growth to $2 trillion by 2028.
Major financial institutions including Western Union, SWIFT, MoneyGram, and Zelle have recently integrated or announced stablecoin solutions. Tetra Digital raised $10 million to develop a digital Canadian dollar backed by Shopify, Wealthsimple, and National Bank of Canada.
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