Canada Stablecorp launches cryptocurrency pegged to Canadian dollar

crypto

Canada Stablecorp, a joint venture between crypto asset manager 3iQ and blockchain developer Mavennet Systems, has launched QCAD, a new stablecoin cryptocurrency that is pegged to the Canadian dollar.

“We are excited to be creating an important piece of financial market infrastructure for Canada.”

Stablecoins are cryptocurrencies designed to minimize the volatility of the price of the currency, relative to a “stable” asset. QCAD, which is built on Ethereum blockchain, represents the first product from Canada Stablecorp, which is based in Toronto. QCAD is now available on Bitvo, a crypto exchange platform.

In November, the Blockchain Venture Capital launched CUSD, the first legally delivered USD-stablecoin in Canada. Jean Desgagne, CEO of Canada Stablecorp, called QCAD the first Canadian dollar stablecoin designed for the mass market.

“We are excited to be creating an important piece of financial market infrastructure for Canada that will serve the digitization of capital markets and provide a robust payment and settlement solution,” Desgagne said.

Canada Stablecorp states on its website that QCAD can be used for B2B transactions as well as institutional settlement in value-chains, such as automotive, oil and gas, and food. The company states it can also provide a digital form of liquidity and funding for capital markets position settlement.

Tether, creator of the largest stablecoin by market cap, has previously been accused of being unable to provide audits for its reserves while continually increasing its supply by millions. In 2018, Bitfinex, a cryptocurrency exchange registered in the British Virgin Islands, was accused of creating Tether out of thin air in order to pump up the price of bitcoin.

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Last year was a rocky one in Canada’s cryptocurrency sector, with exchange firms like QuadrigaCX and the Einstein Exchange revealed to be mismanaging customer funds and skirting regulation.

Desgagne said QCAD represents an opportunity to “set a new standard of transparency and auditability in digital currencies.” He added that he believes Canada Stablecorp will help drive trust and mass adoption of stablecoins. Stablecorp vows on its website to maintain a balance of Canadian dollar equal to the number of QCAD in circulation. This balance, the company says, is published monthly and attested to by a third party.

3iQ, one of the companies behind Stablecorp, received approval from the Ontario Securities Commission (OSC) in October to launch the country’s first-ever regulated bitcoin investment fund. The company filed its preliminary prospectus for that fund in November, three weeks after its OSC approval.

“Bitvo is excited to be a part of the team bringing QCAD to digital asset traders, both retail and institutional,” said Pamela Draper, president and CEO of Bitvo. “With the launch of QCAD, the Stablecorp team is filling a gap in the market that Bitvo customers have been searching for and requesting for some time.”

Isabelle Kirkwood

Isabelle Kirkwood

Writer, globetrotter, drone pilot & David Attenborough enthusiast