Major Canadian investment fund manager 3iQ and blockchain firm Mavennet co-launched through their joint venture Canada Stablecorp, a new regulated stablecoin pegged to the Canadian dollar (CAD). Dubbed QCAD, users can trade it against Bitcoin, Ethereum, and USDC, and it’s supported by cryptocurrency custodians Balance and Bitvo.
QCAD is built on top of the Ethereum blockchain, and it’s based on the ERC-20 standard. It will be backed by the Canadian Dollar, resembling most stablecoins pegged to a widely used fiat currency. It is now live and public can buy, sell and trade on Bitvo’s exchange platform as well as through Bitvo’s over-the-counter desk, which facilitates orders in excess of $50,000.
QCAD is the first Canadian dollar stablecoin designed for mass market, according to Jean Desgagne, CEO of Canada Stablecorp. He said:
“We are excited to be creating an important piece of financial market infrastructure for Canada that will serve the digitisation of capital markets and provide a robust payment and settlement solution. QCAD represents a significant opportunity to set a new standard of transparency and auditability in digital currencies and will help drive trust and mass adoption of stablecoins.”
The token is compliant with know-your-customer and anti-money laundering regulations, Desgagne said. It will be issued by Canada Stablecorp and traded on DVeX, Newton, Bitvo, Netcoins and Coinsmart – five Canada-based crypto exchanges.
Stablecorp’s policies and systems are also designed to be fully compliant with Canada’s major AML agency, the Financial Transactions and Reports Analysis Centre of Canada (FinTRAC). Stablecorp’s chief operating officer (COO) Rob Durscki, who used to work at auditing firm Deloitte, said that the FinTRAC will start regulating Stablecorp under a certain business category in June 2020.