Canada Unveils Draft Stablecoin Rules Banning Yield Payments

The yield ban is the sharpest edge here: it forces Canadian stablecoin economics toward utility-based rewards rather than passive carry, a structural difference from offshore models where holder yield has been a selling point. The reserve-custody and redemption requirements land mainly on non-bank issuers, who must now build Canadian-qualified custody and three-day settlement plumbing before the autumn 2027 start. The long lead time and open consultation suggest the final shape is still contestable. Worth watching is whether the yield restriction survives consultation intact, and how issuers restructure reward programs around the usage-based carve-out.