Canada proposes stablecoin rules capping redemption fees at 1% and banning interest payments

Canada's draft stablecoin regulations, published October 24, 2026, require issuers to hold one-to-one reserves of cash and short-term government debt with Canadian custodians, allow redemption within three business days with fees capped at 1%, and ban interest payments to holders. Penalties for serious violations reach C$10 million, with the Bank of Canada overseeing implementation targeted for fall 2027.