New Canadian draft regulations force non-bank stablecoin issuers to hold 1:1 reserves at qualified institutions and guarantee redemption settlements within three business days.
The proposed Canadian regulatory framework imposes strict operational requirements on non-bank stablecoin issuers, specifically mandating full 1:1 reserve backing at qualified institutions. Furthermore, the requirement to settle redemptions within three business days introduces liquidity management constraints that could fundamentally alter the business models of issuers operating within the jurisdiction.
Issuers must back their tokens 1:1 with reserves held at qualified Canadian institutions.
Redemptions must be settled within three business days.
Canadian regulators have unveiled draft rules requiring non-bank stablecoin issuers to maintain full 1:1 reserve backing. The framework mandates that these reserves be held at qualified domestic institutions to ensure liquidity and consumer protection.
Issuers must back tokens 1:1 with reserves held at qualified Canadian institutions and ensure redemptions are settled within three business days.