TL;DR: The digital dollar era is upon us. Canada has recognized stablecoins as key to modernizing its financial system, and has committed to legislation that will enable more innovation, security and affordability in the crypto space in Canada.
This week marks the biggest moment in Canadian history for digital assets. Canada’s 2025 federal budget formally recognized stablecoins as key to the future of money. And on Monday, the government proposed a framework that signals a positive move forward for the Canadian digital economy.
With this framework, it's clear that policymakers and Canadians all recognize the need to modernize our financial system. With nearly five million Canadians now holding crypto, it's the foundation for continued growth and confidence in crypto.
What’s in the Framework?
Overall, we’re extremely impressed with the government’s approach to stablecoins.
They’ve taken the best components from frameworks around the world, including the GENIUS Act, to put a comprehensive Canadian-made stablecoin policy together that will bring a meaningful update to our financial system.
Some of the important steps taken include:
A path for stablecoin issuers to apply for registration. Issuers must apply to the Bank of Canada to be included in a public registry before they can issue a Canadian stablecoin.
Establishing the Bank of Canada as the primary regulator over issuers.
Introducing protections from the Bank of Canada to allow stablecoins to be used as a payment instrument.
Establishing reserve and custody requirements, allowing for reserve holding of cash and HQLA.
Establishing foreign regime equivalence, which will be determined by the Bank of Canada.
Why This Matters for Canadians
With this framework, Canada has emerged as a global leader in digital assets, being one of the largest economies to move ahead with regulation. Canada’s initiative in this area will mean more competition, lower costs for consumers, and greater innovation across financial services.
Once finalized, this policy will protect consumers while giving businesses the clarity and confidence to invest and grow here at home. Stablecoins can transform how Canadians interact with money by reducing friction, speeding up transactions, and opening the door to new ways of doing business.
Areas for Improvement
That said, there are a few refinements that we believe would help make it even stronger:
Stablecoin issuers should be allowed to share yield on stablecoin deposits in order to increase global competitiveness.
Ensure a level playing field across tokenized products issued by banks, and non banks across tokenized deposits or stablecoins.
CSA interim guidance while the framework is being implemented that allows Canadian-denominated stablecoins to go to market.
What Comes Next?
In the next few months collaboration between industry, regulators, and policymakers will be key to get the framework finalized and implemented. Strong, coordinated guidance can position Canada as a global leader in digital finance and provide businesses and investors the clarity they need to innovate and grow.
In the meantime, we need our regulators to approve a Canadian-denominated stablecoin that platforms can issue and bring to market. Without this step, the promise of the new framework can’t translate into real-world use for Canadians.
This is our moment to build a financial system that is faster, fairer, and more affordable for everyone. The government’s stablecoin legislation is an important step, and continued collaboration will help modernize Canada’s financial system.
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About Lucas Matheson
Lucas Matheson is Coinbase's Canadian Country Director. He is committed to helping create a more equitable financial system in Canada through the power of blockchain.
Lucas has always believed in Coinbase’s mission. He opened his Coinbase account back in 2014, long before joining the company. In his role, he ensures Coinbase is built for Canadians and with their interests in mind. Working with partners, government and regulators, he is making crypto more accessible to Canadians.
Prior to Coinbase, he was the founder and CEO of Pinshape (exit Formlabs), and Senior Director at Shopify leading various operational and finance teams.
Lucas is passionate about entrepreneurship. He spends his spare time advising entrepreneurs and founders on how they can grow and scale, and actively invests in web3 projects and infrastructure.
Coinbase has entered an agreement to acquire The Clearing Company, a prediction markets company innovating at the frontier of regulated, onchain markets. The team brings deep expertise that will help power and scale prediction markets on Coinbase.
