What to Know
- Coinbase Canada wants to offer Canadians a broader suite of crypto products already available to users in the U.S., including derivatives, decentralized finance services and tokenized assets.
- Eric Richmond, Coinbase Canada’s newly appointed CEO, says Canada needs to move beyond temporary exemptions and case-by-case guidance toward a dedicated national framework for digital assets.
- Canada was an early mover on spot crypto exchange-traded funds and has established a registration framework for crypto trading platforms, but industry participants say rules remain fragmented.
- Coinbase U.S. offers a stablecoin lending program for Coinbase One customers that pays about 7% APY, while Canadian users can earn up to 4.5% APY for holding USDC on Coinbase.
- Coinbase hopes to offer certain crypto futures products to permitted Canadian customers through Coinbase Financial Markets after receiving an international exemption from Canadian regulators.
- Broader retail access to crypto futures in Canada would require additional approvals, highlighting differences between Canadian and U.S. regulatory structures.
- Richmond has pointed to Canada’s Stablecoin Act as a constructive step, especially after Tetra Trust launched Canada’s first regulated financial institution-issued Canadian-dollar stablecoin, CADD.
- Coinbase Canada is calling for a harmonized national instrument that would apply consistently across provincial and territorial securities regulators.
Coinbase Canada Sets Out a Bigger Product Vision
Coinbase Canada is positioning itself for a larger role in the country’s digital asset market as the exchange looks beyond basic crypto buying and selling. Eric Richmond, the company’s newly appointed Canadian chief executive, says the long-term goal is to give Canadian customers access to a broader range of blockchain-based financial services, including derivatives, decentralized finance tools and tokenized assets.
The ambition reflects a wider shift across the crypto industry. Major exchanges are no longer focused solely on spot trading. They are increasingly seeking to become platforms where users can trade, earn yield, access tokenized financial instruments, move stablecoins and potentially interact with decentralized protocols through regulated interfaces. For Coinbase Canada, the challenge is not only technical or commercial. It is also regulatory.
Richmond has framed the company’s Canadian strategy around the idea of an “everything exchange,” where financial services are available in one place and supported by blockchain infrastructure that can operate around the clock. That vision, however, depends on a legal environment that gives companies a clear path to launch products safely and consistently across the country.
Temporary Exemptions Are No Longer Enough
Canada has played an important role in the development of regulated crypto markets. The country was among the earliest jurisdictions to approve spot crypto exchange-traded funds, giving investors a regulated route into digital assets before many other major markets did the same. Canada also established a registration framework for crypto trading platforms, helping formalize oversight of exchanges operating in the country.
Even so, Richmond argues that the framework has relied heavily on regulatory staff notices and company-specific exemption orders rather than a permanent legislative structure built specifically for digital assets. That approach helped regulators and companies move quickly during the earlier stage of the market, but it has become less suitable as firms attempt to introduce more sophisticated products.
Products such as tokenized securities, crypto futures, lending programs, stablecoin payments and decentralized finance access can raise different questions from standard spot trading. They may involve custody rules, investor eligibility, collateral treatment, capital requirements, settlement mechanics and consumer disclosures. When rules are handled through temporary exemptions or isolated guidance, companies can face uncertainty about how to scale products nationally.
For Coinbase Canada, the issue is not simply whether regulators are supportive. Richmond has indicated that Canadian regulators are engaging with industry participants and are open to exploring new frameworks. The concern is that the structure of the rules can slow product launches and create uneven access for consumers across borders.
Canadian Users Still Lack Some U.S. Products
The gap between U.S. and Canadian product availability is visible in yield and derivatives offerings. Coinbase U.S. offers Coinbase One customers a stablecoin lending program that pays about 7% APY. Canadian users, by contrast, can earn up to 4.5% APY for holding USDC on Coinbase. The difference underscores how the same platform can provide different services depending on the regulatory permissions available in each market.
Richmond has said his focus is to bring products seen in the U.S. to Canadian users. That does not mean every product can be copied automatically. Canadian rules may require additional approvals, narrower eligibility, or different structures before products are offered more broadly. Still, Coinbase Canada’s leadership is signaling that it wants parity where possible, particularly as users become more aware of what is available in neighboring markets.
Derivatives are another area of focus. Coinbase hopes to provide access to certain crypto futures products for permitted Canadian customers through Coinbase Financial Markets, its CFTC-regulated arm. The company received an international exemption from Canadian regulators to offer such a product in Canada. However, wider access for broader Canadian retail customers would require additional approvals.
In the U.S., Coinbase’s CFTC-regulated status can embed retail expansion within the applicable process. In Canada, the pathway is different. Richmond has characterized the delay less as a matter of regulators moving slowly and more as a reflection of how the rules are structured. That distinction matters because it suggests the company is not merely asking for faster decisions. It is asking for a more durable framework that better matches the types of products crypto firms now want to build.
Tokenization Highlights the Regulatory Divide
Tokenized assets are an important test case for Canada’s next phase of crypto regulation. Both Canada and the U.S. generally treat tokenized financial instruments under the same laws that apply to their traditional equivalents. In practical terms, a tokenized security is still treated as a security, and tokenization does not remove the need for compliance with existing financial rules.
The difference is in the level of detailed guidance. U.S. regulators and market participants have moved further in developing guidance around tokenized securities, collateral, custody and capital treatment. Canadian regulators remain more consultative in several areas, with limited exemptive relief for pilot projects and custody guidance described as interim. Neither country has completed a comprehensive, permanent framework designed specifically for tokenized financial assets, but the more advanced U.S. guidance may help American infrastructure gain wider adoption.
For Canada, the strategic question is whether it wants to shape emerging standards or adapt to standards formed elsewhere. Tokenization could affect securities issuance, fund administration, settlement, collateral management and institutional market plumbing. If Canadian firms lack certainty, they may be slower to test products, while U.S. firms may gain influence over the architecture used by global markets.
Stablecoins Show Canada Can Move
Richmond has pointed to Canada’s Stablecoin Act as evidence that the country can develop constructive crypto legislation. The act was enacted by the Canadian Federal government earlier this year, after the U.S. passed the GENIUS Act last year. For crypto companies, stablecoin rules are especially important because stablecoins can serve as settlement assets, payment tools and core infrastructure for trading platforms.
Following the Stablecoin Act’s passage, Canada saw Tetra Trust launch CADD, described as Canada’s first regulated financial institution-issued Canadian-dollar stablecoin. Tetra Trust is backed by firms including Wealthsimple, Shopify and National Bank of Canada. The launch suggests that regulated Canadian institutions are willing to explore blockchain-based payments and settlement when the legal framework is clear enough.
Stablecoins may also become central to the type of broader platform Coinbase Canada wants to build. A regulated stablecoin ecosystem could support payments, treasury activity, on-chain transfers and access to decentralized applications. However, the same need for clarity applies to adjacent products. If stablecoins are regulated but tokenized assets, DeFi integrations or futures access remain dependent on exemptions, the market may still develop unevenly.
A National Instrument Could Reduce Fragmentation
One of Richmond’s central proposals is to codify existing regulatory practices into a national framework that applies consistently across provincial and territorial securities regulators. In Canadian securities regulation, a national instrument can harmonize rules across jurisdictions by creating a common rule approved by securities commissions. For crypto companies operating across Canada, that could reduce uncertainty and limit the need to navigate inconsistent interpretations.
Such a framework would not necessarily mean looser regulation. The goal, as framed by Coinbase Canada, is greater predictability. A harmonized national instrument could define requirements for custody, disclosures, product approvals, permitted client categories, risk management and supervision. It could also provide regulators with clearer oversight tools while giving companies a more transparent path to compliance.
For consumers, the impact could be practical. Products available to U.S. users may arrive faster in Canada if firms have a defined process for approval. Investors may also benefit from clearer protections if rules are written specifically for digital asset products rather than adapted through exemptions. The balance between innovation and consumer protection remains central, especially as products move beyond simple spot trading into leverage, lending and decentralized markets.
Canada Faces a Timing Decision
Canada has already shown that crypto firms can operate inside a regulated market. The next test is whether the country can modernize its framework quickly enough to support the next generation of crypto products. Coinbase Canada’s push comes at a time when tokenization, stablecoins and regulated derivatives are becoming increasingly important to the industry’s growth strategy.
If policymakers choose to create a bespoke and harmonized national framework, Canadian users could gain more timely access to products already offered elsewhere. If the system continues to rely largely on temporary exemptions and interim guidance, product gaps with the U.S. may persist. For Coinbase Canada, the path to becoming an everything exchange depends on how quickly that regulatory question is resolved.
Frequently Asked Questions (FAQs)
What does Coinbase Canada want to offer users?
Coinbase Canada wants to expand beyond basic crypto trading and offer products such as derivatives, decentralized finance services and tokenized assets, similar to offerings available to Coinbase users in the U.S.
Who is leading Coinbase Canada?
Eric Richmond is the newly appointed CEO of Coinbase Canada. He has been involved in the Canadian digital asset sector through previous executive roles at companies including Shakepay and Coinsquare.
Why is Coinbase Canada asking for clearer rules?
The company says Canada’s current approach relies too much on temporary exemptions, staff notices and fragmented guidance. Coinbase Canada is calling for a permanent, harmonized framework designed specifically for digital assets.
Are Canadian users getting the same Coinbase products as U.S. users?
No. Some products available in the U.S. are not available in Canada. For example, Coinbase U.S. offers a stablecoin lending program for Coinbase One customers that pays about 7% APY, while Canadian users can earn up to 4.5% APY for holding USDC on Coinbase.
Can Coinbase offer crypto futures in Canada?
Coinbase hopes to offer certain crypto futures products to permitted Canadian customers through Coinbase Financial Markets after receiving an international exemption from Canadian regulators. Broader Canadian retail access would require additional approvals.
What is a national instrument in this context?
A national instrument is a harmonized securities rule adopted across Canadian provincial and territorial regulators. Coinbase Canada argues that such a framework could reduce uncertainty and ensure more consistent treatment across the country.
How does tokenization fit into the discussion?
Tokenization is a major area where clearer rules may be needed. Tokenized financial instruments are generally governed by the same laws as their traditional equivalents, but companies need detailed guidance on issues such as custody, collateral and capital treatment.
What role does Canada’s Stablecoin Act play?
Canada’s Stablecoin Act is viewed by Coinbase Canada as a constructive example of crypto legislation. After its passage, Tetra Trust launched CADD, Canada’s first regulated financial institution-issued Canadian-dollar stablecoin.
What could happen if Canada does not update its crypto rules?
If Canada continues to rely mainly on exemptions and interim guidance, Canadian users may wait longer for products already available in the U.S. A clearer national framework could help speed responsible product launches while maintaining regulatory oversight.
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