One-to-one reserves and redemption sit at the centre
The Department of Finance proposal would support the Stablecoin Act by requiring covered domestic and foreign issuers to register with the Bank of Canada. Issuers would need reserves denominated in the reference currency and backed at least one-to-one, redemption at par, and policies covering governance, risk management, data security, recovery and resolution. Monthly public reporting would include outstanding coins, reserve composition and an accountant’s assessment of whether reserves meet the statutory requirements.
Payment service providers would also enter the framework
Related amendments would bring payment service providers that perform payment functions using stablecoins within Canada’s Retail Payment Activities Act. The proposal addresses safeguarding when a provider holds end-user funds in stablecoins, including access to redemption if an issuer becomes insolvent. Issuers would also publish fees and complaint procedures, notify the Bank of Canada about incidents without delay, and generally give advance notice of significant changes. The draft is open for consultation rather than an operative authorization for any particular coin.
What it means for merchants
Merchants considering stablecoin acceptance in Canada should identify the issuer, wallet or processor responsible for reserves, redemption and safeguarding. Contract reviews should cover settlement currency, redemption timing and fees, insolvency treatment, incident notices and whether each provider expects to register under the final framework.
Read the original announcement
Canada Gazette · 24 Oct 2026This brief summarizes the linked primary source. Claims and reported figures have not been independently audited by Payment Guide.