USDC Becomes First Stablecoin to Meet Canada’s New Regulations

USDC’s compliance with these regulations allows it to continue being listed on Canadian platforms beyond the Dec. 31, 2024 compliance deadline. Ripple is finalizing the launch of its RLUSD stablecoin, pending NYDFS approval. Meanwhile, Singapore-based Dtcpay is transitioning to a stablecoin-only model by 2025, focusing on USDC, USDt, FDUSD, and WUSD to improve payment reliability and scalability. Chainalysis, under its new CEO Jonathan Levin, also expects some stablecoin regulatory clarity by 2025.

USDC Becomes First to Meet Canada’s New Listing Rules

Circle, the issuer of the USDC stablecoin, announced that its United States dollar-pegged token achieved compliance with Canada's forthcoming listing requirements set by the Canadian Securities Administrators (CSA). This milestone positions USDC as the first stablecoin to meet the criteria under the CSA’s Value-Referenced Crypto Asset (VCRA) framework, which allows it to remain listed on licensed Canadian crypto trading platforms beyond the Dec. 31, 2024 compliance deadline. The VCRA classification applies to crypto assets that are designed to maintain a stable value by referencing fiat currencies, other values, or a combination thereof.

Circle’s compliance was also solidified through its alignment with the Ontario Securities Commission's regulations. The company is led by Jeremy Allaire, and he believes in the potential for USDC to better cross-border payments and improve Canada’s retail and institutional settlement systems by offering lower transaction costs, increased consumer protections, reduced settlement risks, and heightened competition in payments. 

This latest development is part of Circle’s broader global expansion, which includes its French subsidiary achieving compliance with the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework. This allows it to issue both USDC and the euro-backed stablecoin, Euro Coin (EURC), across the EU. In Asia, Circle’s Singaporean subsidiary received a payment institution license from the Monetary Authority of Singapore in June of 2023. 

Currently, USDC holds a market cap of more than $40.3 billion, trailing only Tether (USDT) in the $201.2 billion stablecoin market.

Top stablecoins by market cap (Source: CoinGecko)

Vancouver’s mayor, Ken Sim, also recently revealed plans for the city to start adding Bitcoin (BTC) to its balance sheet as part of a strategy to diversify investments.

A stablecoin is a type of cryptocurrency that is designed to maintain a stable value by being pegged to a reserve asset, like a fiat currency (like the US dollar), a commodity (like gold), or a combination of assets. These coins achieve stability through mechanisms like full backing by reserves or algorithmic adjustments to their supply. Stablecoins are often used in digital transactions, and they offer a more reliable and less volatile alternative for payments, savings, and trading in the crypto ecosystem.

New Chainalysis CEO Expects Stablecoin Regulation Clarity in 2025

Chainalysis recently appointed Jonathan Levin, its chief strategy officer and co-founder, as its new CEO after the departure of Michael Gronager in October. Levin assumed the role on Dec. 3, which was announced in a Dec. 5 statement. The company also welcomed Paul Auvil, former chief financial officer at Proofpoint, as an independent director on its board.

Under Levin’s leadership, Chainalysis plans to expand its international presence, and to enhance protections for cryptocurrency users globally as well as develop private-sector solutions for digital asset custody. Levin shared that while policymakers are unlikely to change their approach to Anti-Money Laundering (AML) and national security concerns, he hopes to see more clarity on stablecoin regulations, particularly concerning their issuance, redemption, and regulatory oversight.

In October, Chainalysis reported a surge in Bitcoin transactions in the United States after the approval of more spot crypto exchange-traded funds. On the other hand, it also noted a decline in stablecoin activity compared to other countries. The share of stablecoin transactions on U.S.-regulated exchanges dropped from about 50% in 2023 to under 40% in 2024.

However, Levin expects some major regulatory developments in the United States, including the potential repeal of the Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin 121, which mandates financial institutions to account for customers’ digital assets on their balance sheets. Although lawmakers voted to overturn the rule, it was vetoed by President Joe Biden in May. Levin also expects more detailed guidance and no-action letters addressing new crypto applications and tokens.

RLUSD Stablecoin Awaits NYDFS Approval

Ripple has been at the forefront of stablecoin news lately, and the company finally addressed the speculation surrounding the anticipated launch of its RLUSD stablecoin. Ripple clarified that the token did not launch on Dec. 4 as rumored.

In a statement on X, Ripple confirmed that RLUSD’s release is still pending final approval from the New York Department of Financial Services (NYDFS). The company plans to work very closely with the regulator to meet the highest standards before proceeding with the launch.

RLUSD is a 1:1 U.S. dollar-backed stablecoin, and will be fully backed by dollar deposits, short-term U.S. Treasury securities, and cash equivalents. Since August, the stablecoin has undergone beta testing on both the XRP Ledger and Ethereum mainnet. Ripple has plans to expand RLUSD’s reach to additional blockchains and decentralized finance (DeFi) protocols, and the stablecoin is designed to complement and enhance XRP within Ripple’s ecosystem.

Ripple shared that it will provide updates as they become available. The crypto community is very eagerly awaiting the launch but has been warned to remain vigilant against potential scams. Ripple itself also warned people about an increase in fraudulent activity, and reminded users that it will never request XRP or solicit funds from them. 

Dtcpay Shifts to Stablecoin-Only Transactions

Dtcpay, a Singapore-licensed crypto payment platform, announced plans to phase out support for cryptocurrencies like Bitcoin and Ethereum (ETH) in favor of a stablecoin-only model. The transition is set to be completed by January of 2025, and will focus on supporting stablecoins like Tether’s USDt, Circle’s USD Coin (USDC), First Digital USD (FDUSD), and Worldwide USD (WUSD). The move aligns with Dtcpay’s mission to provide a more reliable, scalable, and secure payment experience, as stablecoins already account for a large chunk of its transaction volume.

Dtcpay was launched in 2019 and was formerly known as Digital Treasures Center. It secured a major payment institution license from the Monetary Authority of Singapore (MAS) in 2022, which allowed it to offer digital payment token (DPT) services. Since then, the platform has supported fiat and cryptocurrency payments for in-store and online transactions, including partnerships with major companies like Singapore’s Pontiac Land Group.

Dtcpay wants to make it a priority to provide its users with diverse stablecoin options through the addition of FDUSD and WUSD. FDUSD is backed by reserves and operates on Ethereum and Binance-backed BNB Chain, and currently ranks as the sixth-largest stablecoin by market capitalization. WUSD, issued by the Worldwide Stablecoin Payment Network, is pegged to the U.S. dollar at a 1:1 ratio and fully backed by fiat reserves.