The strategic role of stablecoins and tokenization for Canadian institutions

Digital assets and blockchain-based infrastructure are converging with the global financial system – reshaping how money and assets are issued, transferred and managed. As regulatory clarity improves and market infrastructure matures, stablecoins and tokenized assets are moving from experimentation to early-stage implementation across payments, treasury and capital markets.

For Canadian institutions, this shift introduces both a strategic opportunity and a competitive imperative – requiring careful navigation of emerging risks.

While Canada has established an initial regulatory foundation, coordinated action will be critical to support adoption, enable innovation and maintain global competitiveness.

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Key findings from the research:

Tokenization is reshaping financial infrastructure, enabling faster settlement, lower costs and programmable transaction workflows across payments, treasury and capital markets.
Adoption is scaling rapidly, with stablecoin volumes now exceeding $10.8 trillion annually, and tokenized assets projected to reach up to $10 trillion by 2030.
Canada faces growing strategic implications, with ~99.7% of stablecoins denominated in USD, raising concerns around currency sovereignty and reliance on global infrastructure.
Use cases are expanding across the value chain, with applications across payments, treasury and liquidity management and capital markets – improving efficiency and reducing operational friction.
Regulatory clarity is progressing, with Canada establishing a federal framework for stablecoins alongside guidance from OSFI, CSA and CIRO.

What’s next for the industry?

As tokenization capabilities mature, Canadian financial institutions are moving toward more targeted implementation – focusing on practical use cases, integrating with existing systems and establishing appropriate governance, risk and operating models.

Coordinated action across industry and regulatory bodies will be essential to support interoperability while maintaining domestic oversight.

Institutions that take a pragmatic, execution-focused approach now will be better positioned to compete as market structures evolve.

Download the full report to explore practical use cases, regulatory considerations and strategic implications for Canadian institutions.

The strategic role of stablecoins and tokenization for Canadian institutions

Considerations and implications for our financial system infrastructure

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How we can help

KPMG supports financial institutions in assessing, designing and implementing tokenization and digital asset strategies across the enterprise.

From regulatory and risk analysis to operating model design and technology enablement, we help organizations integrate tokenized capabilities into existing infrastructure. Our cross-functional team brings deep expertise across financial services, digital assets, risk and regulation – working with clients to identify high-impact use cases, navigate evolving regulatory expectations and build scalable capabilities for long-term adoption.

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