Canada proposed stablecoin regulations that would require one-to-one reserves and redemption within three business days, with fees limited to 1%. The draft would retain a prohibition on interest paid for holding stablecoins, including indirect payments through third parties. Issuers would keep reserves with Canadian custodians in separate accounts protected from creditors if an issuer becomes bankrupt. The proposal carries penalties of up to C$10 million for very serious violations, with the Bank of Canada supervising issuers. The draft was published October 24 for a 60-day consultation, and implementation is targeted for fall 2027.