Stablecorp, a digital asset infrastructure company headquarted in Toronto, is re-launching its popular QCAD stablecoin. The company has partnered with Calgary’s Tetra Trust to provide transparency and industry-leading reserve structuring for the stablecoin.
A newly created Stablecorp subsidiary will operate and manage the reserves of the stablecoin. In order to maintain the one Canadian Dollar value of each QCAD, Stablecorp will maintain reserves of cash and cash equivalents equal to or greater than the amount of QCAD in circulation on public blockchains. Initially, QCAD will be available on the Ethereum (ETH), Stellar (XLM), and Algorand (ALGO) blockchains.
“We are extremely excited to bring this asset back to the Canadian market at scale. With the stability of the Canadian banking system and foreign exchange rates with the US Dollar at multi-year highs, we’ve seen demand for QCAD climb and on-chain foreign exchange volumes with USDC rise. Now, with increased regulatory clarity from the Canadian Securities Administrators, the timing is perfect to bring Canadians a transparent, efficient stablecoin,” said Stablecorp CEO Alex McDougall.
The stablecoin’s reserves have been moved to Tetra Trust which has opened an “In Trust For” account with a Canadian financial institution dedicated strictly to holding the QCAD reserves. To enhance transparency, Stablecorp will also be publicly posting monthly attestation reports to validate the volume of reserves as compared to the total circulation of QCAD. This reporting will be performed by Grewal Guyatt LLP, a Canadian Chartered Professional Accounting firm. Stablecorp will also be evaluating available open banking technologies to increase attestation frequency.
“Transparency and properly regulated reserve structures are critical parts of the mass adoption and success of stablecoins and the digital asset market. As the only Qualified Custodian for digital assets in Canada, Tetra is excited to play such a critical role with an institutional grade stablecoin like QCAD,” said Tetra Trust CEO Didier Lavallée.
At launch, QCAD will be available on Stablecorp’s non-custodial Grapes Finance platform as well as on institutional market making platforms DV Chain and Shift Markets.
Stablecorp has posted an in-depth FAQ section on its website with further details on the structure, risks, and benefits of holding and transacting in QCAD and in digital assets.