Canada Proposes 100% Stablecoin Reserves, 3-Day Redemptions and $10M Penalties - CCN.com

Canada has put forward a regulatory framework for stablecoin issuers that would require full backing of tokens with reserves, redemption within three days, and penalties of up to $10 million for non-compliance, according to CCN.com. The proposal signals a shift toward treating stablecoins as a supervised segment of the payments system rather than an unregulated niche.

The core elements are straightforward. A 100% reserve requirement means every token in circulation must be matched by assets held against it, addressing the solvency questions that have followed stablecoins since earlier failures in the sector. A three-day redemption window sets an explicit expectation that holders can convert tokens back into cash within a defined period. The $10 million penalty ceiling gives the rules teeth, though the proposal does not specify how such fines would be applied.

For markets, the development matters for several reasons. Clear reserve and redemption standards could reduce uncertainty around stablecoin liquidity during stress periods, and regulated issuers may find it easier to build partnerships with banks and payment providers. What to watch: how the reserve rules define eligible assets, whether the three-day window applies under all market conditions, and how the framework compares with stablecoin rules emerging in other jurisdictions.