The first stablecoin to be supported by the Canadian dollar has been approved.
QCAD Digital Trust has received regulatory approval for what it’s calling the first compliant Canadian dollar stablecoin.
QCAD now plans to launch a stablecoin that will maintain a stable value of one Canadian dollar.
This will be accomplished by holding one-to-one Canadian dollar reserves for each stablecoin that’s issued by QCAD.
Stablecoins are cryptocurrencies whose value is pegged to another asset, typically the U.S. dollar or price of gold.
The new digital asset is likely to be called the “QCAD stablecoin” and could be available at leading Canadian banks such as TD Canada Trust (TD) and Bank of Montreal (BMO).
In a statement, QCAD Digital Trust said the digital tokens will help individuals and businesses send and receive funds across Canada and around the world at faster speeds and lower costs.
Approval of the stablecoin comes weeks after Canada’s federal government in Ottawa outlined plans to regulate stablecoins through legislation in its November budget.
The Liberal government of Prime Minister Mark Carney has said that legislation will make stablecoins and crypto safer and build trust among Canadians in the digital payments space.
