Stablecorp Announces Re-Launch of QCAD, the Company's Canadian Dollar Denominated Stablecoin
Stablecorp to work with Tetra Trust Company and Grewal Guyatt LLP to provide transparency and industry-leading reserve structuring as part of re-launch.
TORONTO, April 13, 2023 /PRNewswire/ -- Stablecorp, a leading digital asset infrastructure company, today announced the "re-launch" of QCAD, its Canadian Dollar denominated stablecoin. QCAD is issued by Stablecorp Digital Currencies Inc ("SDC"), a wholly owned subsidiary of Stablecorp dedicated exclusively to operating and managing the reserves of the stablecoin. In order to maintain the one Canadian Dollar value of each QCAD, SDC 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.
The QCAD reserves will be held with Tetra Trust Company ("Tetra"). Tetra has opened an "In Trust For" account with a Canadian financial institution dedicated strictly to holding reserves of QCAD. To enhance transparency, SDC will be publicly posting monthly attestation reports to validate the volume of reserves as compared to the total circulation of QCAD. These attestations will be performed by Canadian Chartered Professional Accounting Firm Grewal Guyatt LLP. Stablecorp will also be evaluating available open banking technologies to increase attestation frequency.
"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. "We are thrilled to be working with Tetra Trust Company and Grewal Guyatt LLP to deliver this industry-leading structure and are eager to continue to reveal partnership and use-case announcements in the near term."
"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 in creating an institutional grade stablecoin like QCAD. We're happy to partner with Stablecorp to deliver this valuable solution to Canadians," said Tetra Trust CEO Didier Lavallée.
QCAD is distributed through an Authorized Dealer model whereby wholesale institutional entities will contract directly with SDC for the right to purchase and sell each QCAD at a fixed price of one Canadian Dollar. SDC's ability to fulfil these purchase and sale agreements is evidenced by the disclosure and attestation of the reserves. Notably, 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 underlying reserves or against SDC.
Authorized Dealers will also be able to purchase and sell QCAD for US Dollar fiat or the US Dollar stablecoin USDC. However, all proceeds from sales of QCAD will be converted into Canadian Dollars before being moved into reserves to prevent currency risk in the QCAD reserve structure. 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 invites Canadian-regulated crypto asset trading platforms interested in understanding more about how QCAD could be used in light of the recent regulatory guidance outlined in CSA Staff Notice 21-332 to contact us at info@stablecorp.ca.
For further information on the structure, risks and benefits of holding and transacting in QCAD and digital assets, Stablecorp has created an in-depth FAQ section on its website. Monthly attestation reports are also available on the Stablecorp website.
About Stablecorp
Stablecorp is a leading Canadian fintech firm building stablecoin embedded solutions in the payment, supply chain finance, on-chain FX and digital asset trading space. Through its Grapes Finance Portal and API solutions, Stablecorp has created a suite of embedded stablecoin solutions that power a variety of financial use cases. For more information, visit https://www.stablecorp.ca and https://www.grapesfinance.com.
About Tetra Trust:
Founded in 2019, Tetra Trust is Canada's only trust company licensed to custody digital assets. Tetra received its Certificate of Registration from the Government of Alberta on July 5, 2021 and meets the definition of a qualified custodian under National Instrument 31-103 and National Instrument 81-102. The Company is backed by Coinsquare, Canada's premier cryptocurrency exchange digital asset trading platform; Coinbase Ventures, an investment arm of Coinbase (NASDAQ: COIN); the Canadian Securities Exchange; Mogo Financial Inc. (TSX: MOGO); Urbana Corporation (TSX: URB); and others. Led by a first-class team of security and business experts and a Board of Directors with extensive trust and financial infrastructure experience, Tetra delivers the most advanced digital asset storage technology in the industry. For further information visit www.tetratrust.com.
Stablecorp Media Contact:
Sarah Ikalowych
(910) 448-0282
stablecorp@kcdpr.com
Tetra Trust Company Contact :
Didier Lavallée, CEO
press@tetratrust.com
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SOURCE Stablecorp
