Canada Proposes Stablecoin Redemptions at Any Balance, Fees Capped at 1%

Canada’s Department of Finance has proposed requiring covered stablecoin issuers to redeem tokens at face value for holders of any balance, setting a three-business-day process and a 1% fee ceiling. The department published the draft regulations Oct. 24. They would add operating details to the Stablecoin Act, which received Royal Assent on March 26 but is not in force. The proposed regulations are intended to take effect in fall 2027 alongside the Act. Under the proposal, an issuer would have to honor a redemption request regardless of its size. The three-business-day period covers the issuer’s required steps, including selling reserve assets when necessary and starting a fiat transfer. It does not require the recipient’s bank to credit the funds within that period.

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