Canada Eyes Stablecoin Rules as Scotiabank Flags Limited Market Impact

Policy Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Canada Eyes Stablecoin Rules as Scotiabank Flags Limited Market Impact Scotiabank said Ottawa’s move toward a stablecoin framework is more about modernizing payments than reshaping broader financial markets. By Will Canny , AI Boost | Edited by Sheldon Reback Dec 1, 2025, 3:14 p.m. Canada eyes stablecoin rules as Scotiabank flags limited market impact. (Unsplash, modified by CoinDesk) What to know : Scotiabank argued that Canada’s stablecoin push is unlikely to ripple meaningfully across financial markets. The bank said the real prize is payments innovation, not macro-level consequences. Rising global stablecoin risks underscore the need for clear rules, but Canada’s exposure remains modest, the report said. As Canada turns to stablecoin regulation, Scotiabank argued that the move is unlikely to shake domestic markets. Any framework is really about upgrading payment speed, efficiency and 24/7 settlement, rather than managing systemic risk, economist Derek Holt wrote in last week's report. STORY CONTINUES BELOW Don't miss another story. Subscribe to the State of Crypto Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms of use and privacy policy . In November, the government committed itself to legislation that will regulate stablecoins backed by the Canadian dollar. It follows in the footsteps of the U.S. which passed a law to govern stablecoin issuers in recent months. Stablecoins are cryptocurrencies whose value is tied to another asset, such as fiat currency or gold. They play a major role in cryptocurrency markets, providing a payment infrastructure, and are also used to transfer money internationally. Tether's USDT is the largest stablecoin, followed by USDC, issued by Circle Internet (CRCL). These cryptocurrencies have surged in the U.S., led by Tether’s roughly US$185 billion footprint, Holt said. Stablecoin issuers park reserves mostly in short-term Treasuries, repo and money-market funds, with bitcoin BTC $ 86,563.37 and gold inching in. That mix has drawn attention because a run could force asset liquidations, the report noted. S&P recently cut its assessment of Tether’s ability to hold its peg to the lowest level on its scale, while Circle’s peg looks steadier as a result of its tighter Treasury focus. Without access to the Federal Reserve’s backstops, issuers would have limited defenses in a stress event, Holt wrote. Still, the economist stressed this isn’t a rerun of historic peg failures. Stablecoins remain a small slice of global finance, even if long-run projections imagine trillion-dollar reserve pools that could eventually matter for the Treasury market. And while U.S. officials say stablecoins bolster the dollar’s reach, he cautioned that fiscal slippage or issuer-level imbalances could make that support fragile. For Canada, the bank sees the real payoff in cross-border payments. Stablecoins could cut costs, narrow liquidity premiums and offer round-the-clock settlement, provided issuers remain solid, it said. Read more: Sony Bank Could Issue USD Stablecoin in U.S. Next Year: Nikkei Stablecoins Scotiabank Canada Regulation AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards . For more information, see CoinDesk's full AI Policy . More For You Protocol Research: GoPlus Security By CoinDesk Research Nov 14, 2025 Commissioned by GoPlus What to know : As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M. GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month. Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B. View Full Report More For You Ripple Can Now Offer Wider XRP, RLUSD Services After Singapore Regulator Approval By Shaurya Malwa | Edited by Aoyon Ashraf 5 hours ago The permissions give Ripple more bandwidth to offer token-based settlement and related payment services to banks, fintechs and crypto firms operating in the city-state. What to know : Ripple has received approval from the Monetary Authority of Singapore to expand its payment activities under its Major Payment Institution license. The expanded permissions allow Ripple to offer token-based settlement and related services to banks, fintechs, and crypto firms in Singapore. Ripple's growth in the Asia-Pacific region is driven by a 70% increase in on-chain activity, with Singapore as a key hub since 2017. 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