Canada Stablecoin Draft Permits Usage Rewards, Bans Third-Party Yield Payouts

The draft draws a line between usage incentives and yield, which matters because it lets issuers compete on adoption while closing the third-party route to interest-like payouts. The 1% redemption fee cap and 2027 timeline signal a phased approach rather than an immediate regime. Issuers and distribution partners with yield-bearing stablecoin models are most exposed. Whether the comment period surfaces pushback on the third-party ban, and whether the fee cap and start date survive to the final text, are the open questions.