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Education only · not financial, tax or legal adviceCanadian facts checked 2026-10-31 · a MITEY site
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Stablecoin de-peg stress test

Spread across stablecoins? Shock each design and see what a de-peg would cost.

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Mitey the yeti weighing a coin in each paw, with a balance scale
Mitey says: Stable is a goal, not a guarantee. Test the bad day on paper first.
HoldingAmount (CAD)DesignAfter shockRemove
$4,500
$1,500
$300

Shock by design (price falls by…)

Potential loss
$1,700
Total stablecoins
$8,000
Value after shock
$6,300
Share lost
21.3%
Largest single holding
62.5%

Scenarios are teaching assumptions, not forecasts. None of these holdings would be CDIC-insured.

How this tool works

Stablecoins aim to hold a fixed value, but each design can fail differently: fiat-backed coins depend on reserves and redemption, crypto-backed coins on collateral and liquidations, algorithmic coins on confidence. The TerraUSD (UST) algorithmic stablecoin lost its peg in May 2022.

Enter what you hold, choose a scenario or set your own shock per design, and the tool shows the loss in dollars, the share of your stablecoins affected and how concentrated you are in one coin.

No CDIC cover

CDIC states that cryptocurrencies, including stablecoins, are not covered by deposit insurance. As of 2026-10-30 the federal Stablecoin Act is enacted but not in force. See Stablecoin Act.

Limits

  • Shock sizes are your assumptions, not forecasts.
  • Real de-pegs can be partial, temporary or permanent; redemption may be limited to certain holders.
  • Nothing you enter leaves your browser.

Questions people ask

What is a stablecoin de-peg?

A de-peg is when a stablecoin trades meaningfully away from its target value, such as below $1 for a US-dollar coin. It can be brief or permanent depending on what caused it.

Are stablecoins insured in Canada?

No. CDIC says cryptocurrencies, including stablecoins, are not eligible for deposit insurance.

Is spreading across several stablecoins safer?

It can reduce exposure to a single issuer or design, but coins can share risks such as the same collateral or the same banks. The concentration measure here shows how much rides on one coin.

Sources and dates

  • What's covered — Canada Deposit Insurance Corporationin force
    No date shown on page · checked 2026-10-30. Up to $100,000 per category per member institution; cryptocurrencies, including stablecoins, are not covered.
  • Canada's Stablecoin Framework — Department of Finance Canadaproposed
    Page date 2026-03-31 · checked 2026-10-30. 1:1 high-quality liquid reserves, at-par redemption, no interest/yield, Bank of Canada supervision; expected in force in 2027.
  • Stablecoin Act (S.C. 2026, c. 3, s. 600) — Justice Laws Websiteproposed
    Page date 2026-09-30 · checked 2026-10-30. Enacted but marked 'Act not in force'; comes into force on a day fixed by order.
  • CSA update to crypto asset trading platforms about value-referenced crypto assets — Canadian Securities Administratorsin force
    Page date 2024-09-26 · checked 2026-10-30. After December 31, 2024, platforms may only offer stablecoins that meet their decision terms; stablecoins lack deposit protections.
  • Stablecoins — ethereum.orgreference
    No date shown on page · checked 2026-10-31. Fiat-backed, crypto-backed and algorithmic stablecoin designs.

Education only. Nothing on this page is financial, investment, tax or legal advice, or a recommendation to buy, sell, stake, lend or borrow any crypto-asset. Crypto-assets can lose some or all of their value and are not covered by CDIC. Canadian rules change: check the dated sources above and talk to a qualified professional about your situation. Full disclaimer.