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.

Daily caps would be allowed only when illiquid reserve-asset markets leave an issuer unable to fulfill demand. That exception applies to the any-balance requirement and the three-day process. The fee ceiling is a separate requirement in the proposal.

Issuers would have to publish their available payment methods and the circumstances in which daily limits could apply. Before starting to charge a redemption fee or increasing one, an issuer would have to post notice on its website at least seven days in advance.

The Act applies to stablecoins with existing or reasonably anticipated use across provincial borders or internationally. Issuance includes making a token available for purchase by someone in Canada, whether the sale is direct or handled through an intermediary. The Act also establishes a broader framework for returning a token’s face value and holding reserves worth at least as much as the outstanding stablecoins. The proposal adds practical redemption procedures to the framework covered before its implementing rules were published.

The consultation closes Dec. 23, 2026, at 11:59 p.m. ET.