Stablecoins in Canada: regulatory evolution and industry momentum in 2025

How does Canadian stablecoin regulation compare to others?

The Canadian Securities Administrators (CSA) classify stablecoins (referred to as “value-referenced crypto assets” in Canadian securities law) as securities and/or derivatives under Staff Notice 21-333 Crypto Asset Trading Platforms: Terms and Conditions for Trading Value-Referenced Crypto Assets with Clients.

This regulatory stance contrasts sharply with (i) the U.S. GENIUS Act which characterizes payment stablecoins as non-securities and non-commodities; and (ii) the EU which describes payment stablecoins as non-securities under the European Markets in Crypto-Asset Regulation (MiCA). The U.S. GENIUS Act also encourages reciprocal arrangements with jurisdictions that have substantially similar payment stablecoin regulatory regimes to facilitate international transactions and interoperability with USD denominated payment stablecoins issued outside of the U.S.

At a practical level, this means that if the Canadian approach to stablecoins is not harmonized with the American and international approaches, this will not only isolate Canada from the emerging international payment stablecoins ecosystem (which will impact Canadian integration and financial interoperability) but also result in Canadians using foreign issued stablecoins (and relying on associated foreign created and regulated payments infrastructure) within the Canadian economy resulting in varying impacts on Canadian monetary policy and monetary sovereignty.

In light of recent international developments in the regulation of payment stablecoins, Canadian industry leaders have voiced concerns about a divergence between Canada and the emerging global consensus—emphasizing the need for Canada to establish a regulatory framework that is harmonized with the international approach to maintain monetary sovereignty and prevent economic dependence on financial infrastructure created and controlled by other nations¹.

The state of play for Canadian stablecoins

Despite regulatory uncertainty, Canadian innovation in this sector continues. Tetra Digital Group’s recent $10 million raise to launch a CAD-backed stablecoin (with support from major players like Shopify, Wealthsimple, and National Bank Financial)² and the planned launch of CADX, a $50 million CAD-backed stablecoin and associated payment rails from Transactix³, highlight the growing interest in domestic stablecoin solutions and continuing innovation by Canadians in this space.

According to the IMF, stablecoins are reshaping liquidity, payments and economic stability by unleashing new functionalities (such as programmability) that can integrate seamlessly into digital platforms and unify the way capital flows across borders⁴. Stablecoins are catalyzing innovation in payments, enabling faster and cheaper remittances and driving the development of decentralized finance (DeFi) applications, which offer lending, borrowing, and trading services without intermediaries. As these use cases mature, Canada’s policymakers and financial institutions may need to adapt to a landscape where digital assets coexist with traditional instruments.

What’s next?

The impact of stablecoins on the international financial and fintech environment remains to be seen; however, some commentators have forecasted that it may reshape the global economy. Following the implementation of the U.S. GENIUS Act, H2 of 2025 saw a surge in regulatory discourse, industry advocacy, and entrepreneurial momentum related to payments stablecoins. The coming months may be critical as Canadian federal and provincial regulatory authorities consider how they will adjust to the emerging global frameworks and their influence on domestic innovation, banking and payments infrastructure, and macroeconomic factors such as monetary sovereignty.