Canada has unveiled plans to establish a comprehensive regulatory framework for fiat-backed stablecoins, as detailed in its 2025 federal budget. This initiative aims to align with the U.S., which enacted the Stablecoin Act last year. The proposed regulations will mandate stablecoin issuers to maintain adequate reserves, set clear redemption policies, and enforce robust risk management strategies, including measures to safeguard users' data. To facilitate this regulatory framework, the Bank of Canada will receive a $10 million grant over two years. The ongoing costs of the system will be covered by fees levied on stablecoin issuers under the Retail Payment Activities Act.