Canada has taken a major step toward establishing a regulated stablecoin framework, following through on commitments made in Budget 2025. On November 18, 2025, the federal government introduced legislation that would bring fiat-backed stablecoins under formal oversight for the first time, marking a significant modernization of the country’s payments ecosystem.
The move places Canada among a growing number of jurisdictions, including the U.S. and the European Union, working to regulate stablecoins as they become increasingly embedded in global finance. The proposed rules aim to bring clarity both to issuers and to the financial institutions interacting with digital assets.
Under the draft legislation, stablecoin issuers operating in Canada will be required to maintain adequate reserve assets, adopt transparent redemption policies, and implement strict risk-management frameworks. Issuers will also need to enforce strong privacy and data-protection standards to safeguard user financial information.
Administration of the new regulatory regime will fall under the Bank of Canada, granting the central bank direct oversight of fiat-backed stablecoins and the companies responsible for issuing them.
The legislative package also includes amendments to the Retail Payment Activities Act, which will extend regulatory obligations to payment service providers that use approved stablecoins in their operations. This change is intended to ensure that stablecoin-enabled payment services meet the same transparency, consumer protection, and operational standards as traditional systems.
With this latest step, Canada is positioning itself within the global movement toward structured, compliant digital asset markets, a shift that policymakers say is essential for fostering innovation while protecting consumers and preserving financial stability.