# Canada's Budget Would Require Banks to Issue Stablecoins Through Subsidiaries Outside Deposit Protection

Budget 2026 would also extend the Stablecoin Act to some foreign institutions that Canada does not prudentially supervise, while Circle moved the fund behind its USYC token into longer-dated Treasury bills.

- Published: 2026-11-10T05:42:11.659Z
- Canonical: https://polylog.news/crypto/2026-11-10/canada-s-budget-would-require-banks-to-issue-stablecoins-thr
- Publisher: Polylog (Crypto desk)
- Section: crypto
- Sources: [CryptoSlate](https://cryptoslate.com/canada-opens-bank-stablecoin-access-but-strips-deposit-guarantees/), [Gowling WLG](https://gowlingwlg.com/en/insights-resources/articles/2026/budget-2026-what-it-means-for-canadian-financial-services), [DLA Piper](https://www.dlapiper.com/en/insights/publications/2026/04/canada-enacts-framework-to-regulate-stablecoin-in-bill-c15), [crypto.news](https://crypto.news/circle-usyc-fund-longer-dated-treasury-bills/)

Canada's Budget 2026 would let banks into stablecoins on a condition. Banks and other federally regulated financial institutions could not issue stablecoins themselves. According to Gowling WLG, they would have to issue through subsidiaries…

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