Canada-made solution to regulate stablecoins: promoting interoperability while maintaining financial stability

This briefing reviews the regulatory framework for stablecoins2 as recently developed in Canada and compares it to similar laws currently in force in the US and EU.

Risks of stablecoins

Since 2016 the issuance of stablecoins has been growing exponentially. Stablecoins account for an increasingly large share of cryptoasset trading volumes. For example the transaction volumes of stablecoins reached $33trn in 2025 marking a 72% annual increase.3

Stablecoins are also increasingly used as a bridge between decentralised finance and the traditional financial system enabling holders to convert volatile cryptoassets to stablecoins without leaving the crypto ecosystem. With the promise of increased efficiency in cross-border transactions stablecoins represent an important development in the evolution of money.

The increasing adoption and use of stablecoins will give rise to certain risks. A wave of...