Canada proposes direct stablecoin cash-outs for small holders with 1% fee cap

Canada's proposed stablecoin regulations would allow covered retail holders to redeem tokens directly from issuers without a minimum redemption amount, adding an exit route alongside exchange sales. The October 24 proposal caps redemption fees at 1% and requires completion within three business days, though issuers may limit daily redemptions during liquidity shortfalls. Direct redemption availability depends on the holder's location, the issuing entity, and applicable exemptions. For USDC holders, par redemption means U.S. dollars; a Canadian holder seeking Canadian dollars would still need currency conversion arrangements. Circle's USDC terms currently restrict direct redemption to institutional accounts, excluding individual holders.