Update
Canada’s Budget Requires Banks to Issue Stablecoins Through Separate Subsidiaries
Canada's budget proposes requiring federally regulated banks to issue stablecoins through separate subsidiaries, bringing them under the Stablecoin Act. These subsidiaries would be non-financial institutions regulated under the Act, and the proposed framework would extend to foreign financial institutions not prudentially regulated in Canada. The existing Stablecoin Act excludes financial-institution issuers, subject to regulations. The Bank of Canada will register and supervise these non-financial institution issuers, monitor issuance and redemption risks, and take enforcement action.