The post Canada’s 2025 Federal Budget Reveals Plans to Regulate Stablecoins appeared first on Coinpedia Fintech News
Canada is taking a major step to regulate stablecoins, a sector that has recently seen massive demand from institutions. This comes after the U.S. passed GENIUS Act, the landmark stablecoin legislation, setting an example for other countries.
Canada Moves to Regulate Stablecoins
Canada plans to regulate fiat-based stablecoins as part of its 2025 Federal budget. The budget document notes that the new rules will require stablecoin issuers to maintain sufficient reserves, set clear redemption policies, implement risk management frameworks, and protect users’ personal data.
“The legislation will also include national security safeguards to support the integrity of the framework so that fiat-backed stablecoins are safe and secure for consumers and businesses to use,” it said.
It's official:
Canada is now in the stablecoin game
Finally joining every other G7 country with legislation in motion. Progress is progress. pic.twitter.com/fSqjv6SgEW
— Annika Lewis (@AnnikaSays) November 4, 2025
The Bank of Canada will retain $10 million over two years, starting in 2026-27, from its remittances to the Consolidated Revenue Fund. After that, it expects annual administrative costs at around $5 million, which will be offset from stablecoin issuers regulated under the Act.
It also plans to prepare amendments to the Retail Payment Activities Act to enable the regulation of payment service providers that carry out payment functions using stablecoins.
Although the document did not specify a timeline, this is part of a wider plan to modernize payments and make digital transactions faster, safer, and more affordable for Canada’s 41.7 million residents.
Crypto advocacy group Stand With Crypto Canada praised the move, calling it a “significant move toward faster, cheaper, and borderless payments.”
Canada just made a big step forward.
Today’s federal budget includes new guidance on stablecoin regulation, signaling progress toward embracing faster, cheaper, and borderless payments.
With 60,000 advocates strong, Stand with Crypto Canada will continue to be a driving… pic.twitter.com/C0ZiO3GLsR
— Stand With Crypto Canada
Stablecoin Demand Surges
The total stablecoin market cap has surpassed $300 billion, and is currently at $312 billion, which reflects the growing demand. The institutional demand is also rising as major companies are jumping on board.
Global payment giants like Western Union, SWIFT, MoneyGram, and Zelle have either started using stablecoin solutions or announced plans to do so in the past few months.
In Canada, Tetra Digital is emerging as one of the leading players in the stablecoin space. It raised $10 million to create a digital Canadian dollar, backed by investors like Shopify, Wealthsimple, and the National Bank of Canada.
