Canada Sets New Stablecoin Rules Requiring 1:1 Reserves and Redemption at Par

The new framework requires Bank of Canada (Canada’s central bank) registration and full face-value redemption, with broader regulations expected to take effect in 2027.

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Terms & Concepts
  • Stablecoin: A cryptocurrency designed to maintain a stable value, often by being backed by reserves such as fiat currency.
  • 1:1 reserves: A reserve model in which each issued token is backed by an equivalent amount of assets, typically intended to support redemption and price stability.
  • At-par redemption: The ability to redeem a token at its full face value, usually one token for one unit of the referenced fiat currency.