The Bank of Canada is expected to introduce stablecoin regulations in mid-to-late 2027, delaying regulatory clarity for the country’s crypto industry longer than initially anticipated.

Despite the regulatory uncertainty, Visa Canada and Wealthsimple have already started testing the use of USDC for certain payment settlement obligations on Visa’s network. The move highlights how institutional stablecoin adoption continues to grow even as rules for non-bank stablecoin issuers remain unfinished.

According to a Reuters report, the original plan to launch the regulations in early 2027 was considered too ambitious. The stablecoin framework is now expected to be introduced sometime in the middle or later part of 2027. Canada’s government had previously targeted 2027 as the year the broader framework would officially take effect.

The delay creates uncertainty for crypto firms and fintech companies looking to expand in Canada. Businesses still need to prepare for potential requirements involving registration, reserve backing, redemption mechanisms, governance standards, risk management, and possible restrictions on yield-bearing stablecoins.

Even without finalized regulations, major payment companies and fintech platforms are continuing to experiment with stablecoin-based settlement systems.

Visa Canada and Wealthsimple said the pilot allows Wealthsimple to use USD Coin (USDC) to settle certain obligations within Visa’s payment network. The system is also designed to support near 24/7 settlement availability.

Beyond faster payments, stablecoins could also improve treasury and liquidity management for fintech firms. Blockchain-based settlement gives companies more flexibility in managing payments and moving funds compared to traditional financial infrastructure.

Wealthsimple currently serves more than 4 million Canadians and manages over US$100 billion in assets. As a result, the use of stablecoins in settlement operations could significantly improve the company’s back-end financial efficiency.

The Canadian pilot is part of Visa’s broader global stablecoin strategy. Previously, Visa revealed it had already launched stablecoin settlement pilots across nine blockchains, with an annualized settlement volume reaching US$7 billion.