Stablecorp Announces Re-Launch of QCAD, Canadian Dollar Stablecoin

Stablecorp, a prominent digital asset infrastructure company, has revealed the re-launch of QCAD, its Canadian Dollar denominated stablecoin. With a focus on transparency and regulatory compliance, Stablecorp aims to offer Canadians a reliable and efficient stablecoin solution in the wake of increased demand for digital assets and growing regulatory clarity from the Canadian Securities Administrators.

Details of the Re-Launch

QCAD will be issued by Stablecorp’s wholly owned subsidiary, Stablecorp Digital Currencies Inc (SDC). To maintain the stability of QCAD, SDC will hold reserves of cash and cash equivalents with Tetra Trust Company, a Qualified Custodian for digital assets in Canada. Monthly attestation reports, validated by Canadian Chartered Professional Accounting Firm Grewal Guyatt LLP, will be publicly posted by SDC to ensure transparency and verify the volume of reserves in comparison to the total circulation of QCAD.

Enhanced Transparency Measures

Stablecorp’s commitment to transparency is evident in its partnership with Tetra Trust and Grewal Guyatt LLP. By holding reserves with a Qualified Custodian and undergoing regular attestation reports, Stablecorp aims to provide confidence to QCAD users and regulators alike. The transparency measures are expected to enhance the mass adoption and success of QCAD, as properly regulated reserve structures are crucial for stablecoins and the digital asset market.

Distribution and Authorized Dealer Model

QCAD will be distributed through an Authorized Dealer model, where wholesale institutional entities will contract directly with SDC for the right to purchase and sell QCAD at a fixed price of one Canadian Dollar. This model ensures that SDC’s ability to fulfill purchase and sale agreements is backed by the disclosure and attestation of reserves. It’s worth noting that QCAD itself does not represent a direct claim on the underlying reserves or against SDC, meaning that QCAD holders who are not Authorized Dealers will not have a direct claim on the reserves or against SDC.

Currency Risk Mitigation

To prevent currency risk in the reserve structure, all proceeds from sales of QCAD will be converted into Canadian Dollars before being moved into reserves. This measure aims to protect the stability and integrity of QCAD as a Canadian Dollar denominated stablecoin and provide assurance to QCAD users.

Partnerships and Availability

Stablecorp is actively seeking partnerships with Canadian-regulated crypto asset trading platforms in light of recent regulatory guidance outlined in CSA Staff Notice 21-332. QCAD will be available on Stablecorp’s non-custodial Grapes Finance platform, as well as institutional market making platforms DV Chain and Shift Markets, providing multiple options for users to access and transact with this Canadian Dollar denominated stablecoin.

TL;DR

Stablecorp, a digital asset infrastructure company, has announced the re-launch of QCAD, its Canadian Dollar denominated stablecoin. QCAD will be issued by its wholly owned subsidiary, Stablecorp Digital Currencies Inc (SDC), and will be backed by reserves of cash and cash equivalents held with Tetra Trust Company. To ensure transparency, SDC will be publicly posting monthly attestation reports, validated by Canadian Chartered Professional Accounting Firm Grewal Guyatt LLP, to verify the volume of reserves. QCAD will initially be available on the Ethereum, Stellar, and Algorand blockchains. The stablecoin will be distributed through an Authorized Dealer model, and proceeds from sales of QCAD will be converted into Canadian Dollars to prevent currency risk in the reserve structure. Stablecorp is actively seeking partnerships with Canadian-regulated crypto asset trading platforms in light of recent regulatory guidance. QCAD will be available on Stablecorp’s Grapes Finance platform, as well as institutional market making platforms DV Chain and Shift Markets.