Canada approves first regulation-compliant stablecoin 'QCAD'

Canada's first stablecoin that meets the current regulatory framework, a Canadian dollar (CAD) stablecoin, has officially emerged.

According to PR Newswire on the 25th, Stablecorp, a Canadian digital asset infrastructure firm, said it has received formal approval from Ontario's regulatory authority to distribute the stablecoin QCAD. As a result, QCAD has obtained the status of the first regulation-compliant CAD stablecoin in Canada.

Stablecorp has been refining its issuance structure, reserve management, and disclosure standards through years of collaboration with the Canadian Securities Administrators (CSA). QCAD is structured to issue 1 token per 1 Canadian dollar of deposits, and all reserves are held at regulated financial institutions. The trust conducts regular audits and reporting of the reserves, and accordingly users can reliably use various financial functions such as fast payments, low fees, and cross-border transfers.

Fred Pye, co-founder of Stablecorp, said, "After creating the first Canadian dollar-based token in 2020, we have been preparing the regulatory approval process for almost six years," adding, "Like when we first introduced a Bitcoin-based ETP, we have focused on implementing innovative products within the regulatory framework."