Digital asset infrastructure company, Stablecorp, announced the re-launch of its Canadian dollar pegged QCAD stablecoin on Thursday.
Stablecorp Digital Currencies Inc (SDC), a subsidiary of Stablecorp, will issue QCAD, a stablecoin backed by cash and cash equivalents. SDC will maintain reserves equal to or greater than the amount of QCAD in circulation on Ethereum, Stellar, and Algorand blockchains. The reserves will be held by Canadian digital asset custodian, Tetra Trust Company, with monthly attestation reports validating the volume of reserves as compared to the total circulation of QCAD.
“Transparency and properly regulated reserve structures are critical parts of the mass adoption and success of stablecoins and the digital asset market,” said Tetra Trust CEO Didier Lavallée.
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.”
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Reserves held by Tetra Trust Company
QCAD is a multi-chain stablecoin asset available on Ethereum, Algorand, and Stellar blockchains that can be used for payment or to facilitate trading, borrowing, and lending of other crypto assets.
Other uses of QCAD include on-chain foreign exchange solutions through stablecoin-to-stablecoin trading with specific connections to the Circle and USDC ecosystems. It also includes both in and outside of Canada transfer and payment rails, and as an instant CAD-denominated bridge between crypto assets and fiat.
QCAD is distributed through an authorized dealer model, with institutional entities contracting directly with SDC for the right to purchase and sell each coin at a fixed price of one Canadian dollar. An authorized dealer model is a distribution model used in the issuance of stablecoins or other digital assets. In this model, wholesale institutional entities are authorized to purchase and sell the stablecoin directly from the issuer at a fixed price.
QCAD does not represent a direct claim on the underlying reserves or against SDC.
Authorized dealers can also purchase and sell QCAD for US dollar fiat or in exchange for the USDC stablecoin, but all proceeds from sales will be converted into Canadian dollars before being moved into reserves to prevent currency risk.
The currency will be available on Stablecorp’s non-custodial Grapes Finance platform, as well as on institutional market making platforms DV Chain and Shift Markets.
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