Canada opens consultation on draft stablecoin rules, maintains ban on yields

Canada has opened a consultation on draft stablecoin regulations that would require non-bank issuers to hold 1:1 reserves at qualified Canadian institutions and process redemptions within three business days. The draft keeps a ban on yield-bearing stablecoins. Traders should watch how the reserve and redemption requirements shape stablecoin issuance and liquidity in the Canadian market, though the rules remain at the consultation stage.