Ottawa softens its ban on stablecoin yield

Draft federal regulations let stablecoin issuers pay rewards tied to transactions. Ottawa had pledged to ban yield paid directly or indirectly.

Rewards for transactions are allowed, but rewards for simply holding stablecoins are still restricted.

To redeem a stablecoin

3 business days

Issuers must hand over cash within three business days of a redemption request, with fees of no more than one per cent.

Finance expects the Stablecoin Act to cover five issuers, including Circle's USDC. The rules are to take effect in late 2027.