Blockchain Venture Capital Inc. Welcomes Draft of Bank of Canada's Stablecoin Act

Toronto, Ontario--(Newsfile Corp. - November 20, 2025) - Blockchain Venture Capital Inc. (CSE: BVCI) ("BVCI" or the "Company"), the issuer of the Canadian-dollar-backed stablecoin CADT and U.S.-dollar-backed CUSD, welcomes the release of the Draft of the Bank of Canada's Stablecoin Act, representing a landmark step toward establishing a clear, nationally supervised regulatory regime for fiat-backed stablecoins in Canada.

The proposed legislation sets out comprehensive requirements to enhance consumer protection, financial stability, and operational integrity. Key elements of the Draft Act include:

• A clear ban on yield or interest associated with fiat-backed stablecoin deposits;
• Mandatory, publicly available redemption policies for stablecoin holders;
• Strict reserve rules, requiring that reserve assets:
  • Be used solely for redemptions;
  • Be composed of the reference currency or high-quality liquid assets (HQLA);
  • Be held with a qualified custodian, defined as a Canadian financial institution;
• Confirmation that compliant fiat-backed stablecoins will not be treated as securities;
• Enhanced national-security, operational reliability, and risk-management obligations;
• A new authorization and oversight framework administered by the Bank of Canada.

These requirements reflect the direction set out in Budget 2025, affirming the federal government's commitment to a safe, transparent, and domestically regulated stablecoin environment.

BVCI Reaffirms Its Commitment to Meeting All Requirements

BVCI has consistently designed CADT and CUSD around transparency, qualified custody, 1:1 reserve backing, and strong compliance. Over the past five years, the Company has worked with Canadian regulators and banking partners to uphold robust governance, AML/ATF standards, reserve safeguards, and consumer-protection measures.

"BVCI welcomes the clarity and direction introduced in the Draft Stablecoin Act," said Richard Zhou, Founder and CEO of BVCI. "From day one, CADT and CUSD have been built around the principles now being formalized by the Bank of Canada. We remain fully committed to meeting all criteria set out in the Draft Act, including the ban on yield, strict reserve rules, transparent redemption practices, and adherence to qualified custodian requirements."

Once the Act is approved by Parliament, BVCI intends to participate in the Bank of Canada's authorization regime and operate its stablecoin systems under full national oversight.

BVCI's Early Leadership in Stablecoin Development

BVCI has been a pioneer in Canadian and international stablecoin development since 2019:

• July 1, 2019 - Launched the CADT stablecoin in Toronto, helping "launch Canada into a new era of digital global finance."
• November 2019 - Introduced the CUSD stablecoin, pegged to the U.S. dollar, in Nevada, U.S.
• July 2020 - Issued CADT in Canada with the support of Concentra Trust, becoming one of the earliest trust-backed stablecoins linked to the Canadian dollar.
• 2019-2025 - Worked closely with Ontario, Alberta, and British Columbia securities regulators under CSA oversight, advocating for clear, practical rules for stablecoin issuance, security-tokenization, and Exempt Market Dealer (EMD) registration.
• August 12, 2022 - Listed on the Canadian Securities Exchange (CSE: BVCI), becoming one of the first Canadian public companies with active blockchain infrastructure, stablecoin products, and payment solutions.
• December 2023-2025 - Submitted Exemptive Relief Applications in accordance with CSA Staff Notice 21-333, seeking approval to enable CADT trading on major Crypto Trading Platforms (CTPs).
• However, given the emergence of the new federal stablecoin regulatory regime, BVCI may consider either continuing or withdrawing these applications depending on the final definition and scope of 'value-referenced crypto assets' and 'stablecoin issuers' under the Bank of Canada's forthcoming Stablecoin Act.

Despite years of regulatory uncertainty, BVCI has remained steadfast in its mission to build secure, compliant, and consumer-friendly digital-currency systems that bridge traditional finance and blockchain technology.

Strengthening Canada's Digital Asset and Payment Landscape

The introduction of the Draft Stablecoin Act marks a transformational moment for Canada's digital finance sector. As stablecoins increasingly support payments, settlements, commerce, and blockchain-based services, a nationally supervised framework is essential for protecting consumers and fostering innovation.

"This framework represents a major step forward for compliant digital payments in Canada," added Zhou. "We look forward to contributing our experience and technology to support the successful rollout of this national regime."

The Draft Act is available at:
https://fin.canada.ca/drleg-apl/2025/nwmm-amvm-1-1125-bil.pdf

Termination of Acquisition of Coin Shack

After constructive discussions and mutual agreement, BVCI and Coin Shack determined not to proceed with the previously announced acquisition. This decision was previously disclosed in BVCI's earlier news release and reflects both parties' shared assessment of regulatory considerations and strategic priorities.

About Blockchain Venture Capital Inc.

Blockchain Venture Capital Inc. is an Ontario-incorporated company registered as a Money Services Business (MSB) with FINTRAC. The Company provides blockchain-based financial infrastructure, including:

• BVC Chain, a proprietary blockchain and distributed-ledger platform;
• BvcPay, a mobile wallet enabling digital transactions using Bitcoin, Ethereum, and CADT;
• CADT, BVCI's Canadian-dollar-backed stablecoin for payments, settlements, digital-asset issuance, and on-chain ledger services.

Unless and until BVCI obtains all necessary regulatory approvals or qualifies for exemptions, there is no assurance the Company will be able to proceed with its CADT-related initiatives.

Forward-Looking Information

This news release contains forward-looking information within the meaning of applicable securities laws, including expectations regarding acquisitions, private placements, and regulatory matters. Although the Company has attempted to identify important factors that may cause actual results to differ materially, other factors may cause results not to be as anticipated, estimated, or intended. There can be no assurance that such information will prove to be accurate. Readers should not place undue reliance on forward-looking information. The Company does not undertake to update forward-looking information except in accordance with applicable securities laws.

The Canadian Securities Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Not for distribution to U.S. newswire services or dissemination in the United States.

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