Canada’s Nov. 5, 2026 budget proposes requiring banks and other federally regulated financial institutions to issue stablecoins through non-financial subsidiaries subject to the Stablecoin Act. The framework would also be extended to foreign financial institutions outside Canadian prudential supervision to ensure consistent treatment across issuers. Covered stablecoins would not qualify as deposits or publicly insured instruments, even when issued through a bank-owned subsidiary. Holders would be entitled to redemption at face value in the tracked currency, backed by reserves worth at least the outstanding face value and held in qualified, segregated custody. Implementation still requires legislative approval and commencement orders, with the wider framework intended to begin in fall 2027.
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