Canada has introduced its first national rules for stablecoins in the 2025 budget. Under the plan, the Bank of Canada will oversee the rules, which ask companies that issue stablecoins to keep enough money in reserve and make it easy for people to get their funds back. The rules also aim to keep users’ personal and financial information safe.
The plan will start in 2026, with $10 million to help set it up over two years. Later, about $5 million a year will be recovered from the companies being regulated. The government says the rules will help people send and receive money more safely in Canada.
Notably, Canada is following in the U.S.’s footsteps, which passed the GENIUS Act in July 2025. These new rules make sure stablecoins are backed by real money and follow safety standards.
The budget states that these steps are part of a wider effort to modernize Canada’s payment systems, especially after it dropped its central bank digital currency project in 2024.
Supporters in the crypto industry have welcomed the plan. “This is a major step toward embracing faster, cheaper, and borderless payments,” said Stand With Crypto Canada on X.
Meanwhile, Lucas Matheson, CEO of Coinbase Canada, called it “a turning point for innovation” and said the rules “will change how Canadians interact with money.”
However, some experts have warned that new risks could arise. Blockchain firm Chainalysis noted that the fall of TerraUSD in 2022 showed that stablecoins can still face problems. It also added that well-known coins like USDC and DAI have had issues before, reminding everyone that safety is still important.
Around the world, stablecoins are becoming more popular. The U.S. Treasury says the market is now worth over $300 billion and could grow to $2 trillion by 2028.
In addition, big payment companies such as Western Union and SWIFT are testing stablecoins to make sending money faster and easier. With its new rules, Canada joins places like Hong Kong and Japan that are setting clear standards for digital money.
Also Read: Ripple Raises $500M at $40B Valuation Led by Fortress
