$10 Million Investment Fuels Regulated Canadian Stablecoin Amid Calls for Swift Regulatory Action

Canada is facing increasing pressure to accelerate its regulatory approach to stablecoins, with industry figures warning of significant economic implications if action is not taken promptly. Liam Horne, a prominent voice in the sector, stated on social media that Canada "needs to move fast on stablecoins," emphasizing that "there’s actually a lot at stake for our economy given how protected our financial and banking sectors are." Horne highlighted stablecoins' ability to "pierce through and go directly to consumers in a way US banks haven’t been able to," posing a "serious threat to the banks."

The current Canadian regulatory landscape, primarily led by the Canadian Securities Administrators (CSA), classifies stablecoins as securities and/or derivatives, mandating compliance with a disclosure-based regime. This approach contrasts sharply with evolving international standards. A September 2025 report from the Financial Consumer Agency of Canada (FCAC) revealed that 49% of stablecoin owners have experienced negative outcomes, including lost funds, underscoring consumer protection concerns and a widespread call for a distinct regulatory framework.

In a significant divergence, the U.S. Senate passed the Guiding and Establishing National Innovation in U.S. Stablecoins (GENIUS) Act in June 2025 with a 68-30 vote. This landmark legislation defines stablecoins as payment instruments, not securities, and establishes a comprehensive federal framework with 1:1 reserve requirements, transparency mandates, and robust customer protections. This move positions the U.S. to foster broader adoption of digital payment tools.

Amidst this regulatory backdrop, Tetra Digital Group announced a $10 million investment in September 2025 from a consortium of Canadian financial and tech leaders, including Urbana Corporation, Wealthsimple, National Bank of Canada, and Shopify. The group aims to launch a regulated Canadian fiat-backed stablecoin by early 2026, subject to regulatory approvals. This initiative seeks to provide a reliable, institutional-grade solution for Canadian dollar payments and remittances, aligning with global standards for regulatory compliance and consumer protection.

The push for a clear and consistent stablecoin framework comes as the industry anticipates widespread adoption and potential disruption to traditional financial services. With the U.S. and other major economies moving towards clearer regulatory paths, Canadian stakeholders are urging policymakers to reconsider the current approach to ensure the nation remains competitive and protects its financial ecosystem.