Canada Stablecorp Introduces Cryptocurrency Tightened To Canadian Dollar
A joint venture between crypto asset manager 3iQ and blockchain developer Mavennet Systems, Canada Stablecorp, has introduced QCAD, a new stablecoin cryptocurrency that is tightened to the Canadian dollar.
“We are excited to be creating an important piece of financial market infrastructure for Canada.”
Stablecoins are cryptos produced to reduce the volatility of the price of the currency, related to a “stable” asset. QCAD, which is developed on Ethereum blockchain, depicts the first product from Canada Stablecorp, which is based in Toronto. QCAD is now accessible on a crypto exchange platform, Bitvo.
In November, the Blockchain Venture Capital introduced CUSD, the first judicially delivered USD-stablecoin in Canada. Jean Desgagne, CEO of Canada Stablecorp, named QCAD the first Canadian dollar stablecoin created 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 stated.
Canada Stablecorp says on its website that QCAD can be used for B2B transactions as well as institutional settlement in value-chains, like automotive, oil and gas, and food. The company declares it can also give a digital form of funding and liquidity for capital markets position settlement.
Tether, creator of the largest stablecoin by market cap, has earlier been indicted for being incapable of providing audits for its reserves while continuously expanding its supply by millions. In 2018, Bitfinex, a cryptocurrency exchange listed in the British Virgin Islands, was accused of creating Tether out of thin air to pump up the price of bitcoin.
Last year was a rocky one in Canada’s crypto sector, with exchange firms like the Einstein Exchange and QuadrigaCX declared to be blundering consumer funds and skirting regulation.
Desgagne told QCAD to describe an opportunity to “set a new standard of transparency and auditability in digital currencies.”
He added that he thinks Canada Stablecorp will further drive the trust and mass approval of stablecoins. Stablecorp pledges on its website to manage a balance of Canadian dollar equal to the number of QCAD in circulation.
This balance, the company asserts, is published monthly and attested to by a third party.
3iQ, one of the companies behind Stablecorp, got approval from the Ontario Securities Commission (OSC) in October to start the country’s first-ever regulated bitcoin investment fund. The company filed its introductory plan 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,” stated 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.”