Canada Advances Stablecoin Policy Amidst Growing Crypto Lending Market
Canada's federal budget has passed in Parliament, advancing a regulatory policy to govern stablecoins. Under the new framework, the Bank of Canada will supervise stablecoin issuance and maintain a registry of approved applicants. Issuers are required to maintain 1:1 reserves in the reference currency or other high-quality liquid assets, enable immediate redemptions, and meet comprehensive risk management, cybersecurity, disclosures, and failure-management standards. Non-bank stablecoin issuers are prohibited from offering any form of interest or yield on stablecoins to customers. Coinbase Canada CEO Lucas Matheson supported the regulatory changes while urging an interim CAD-denominated path to market and the ability to offer yield on stablecoin deposits. Although these provisions still face further procedural hurdles, this marks a significant policy achievement for Prime Minister Mark Carney's government and aligns with global trends toward tighter stablecoin oversight.
Meanwhile, in the crypto lending sector, Tether has made a strategic investment in Ledn to support the expansion of Bitcoin-backed loans. The Bitcoin-backed lending market surpassed $1 billion in loan originations during 2025 as the sector recovered following the 2022–2023 market collapses. Since its launch, Ledn has originated over $2.8 billion in Bitcoin-backed loans, issuing more than $1 billion in 2025 alone, including $392 million in Q3. Ledn's annual recurring revenue has exceeded $100 million, with expectations to nearly triple its loan book from 2024 levels. Tether’s investment complements its broader strategy to expand its global presence by supporting self-custody and real-world finance initiatives. Paolo Ardoino of Tether highlighted that the partnership strengthens digital assets’ role in the financial ecosystem. Tether's attestation reports highlight more than $10 billion in net profit year-to-date, $6.8 billion in excess reserves, over $174 billion USDT circulating, and over $135 billion invested in US Treasuries, with Q3 USDT issuance exceeding $17 billion. The crypto-collateralized lending sector is forecasted by DataIntelo to surpass $60 billion by 2033, with industry data from DefiLlama indicating a current sector size near $65.87 billion and having reached $90 billion in October.
