Coinbase invests in Canadian stablecoin issuer

Coinbase has made a strategic investment in Stablecorp, a Toronto-based fintech company that issues QCAD, a fiat-backed stablecoin pegged to the Canadian dollar.

This move aims to expand access to tokenized Canadian dollars and accelerate the adoption of QCAD for faster, cheaper, and borderless payments across Canada.

Lucas Matheson, CEO of Coinbase Canada, emphasized the urgent need for a reliable Canadian stablecoin due to the inefficiencies of traditional payment systems in Canada, such as costly wire transfers and the absence of a peer-to-peer payment rail. Stablecoins like QCAD enable instant, 24/7, cross-border transactions, offering a more efficient alternative to legacy financial infrastructure.

Despite its promise, the Canadian stablecoin market faces regulatory challenges. Under Canada’s Value-Referenced Crypto Asset (VRCA) framework, fiat-backed stablecoins are currently classified as securities, which restricts their use and imposes strict compliance requirements.

Coinbase is advocating for regulatory reform to treat stablecoins as payment instruments rather than securities, similar to recent clarifications by the U.S. SEC.

Coinbase’s investment not only provides capital but also strategic support to market and integrate QCAD, positioning the company to influence Canada’s evolving digital asset regulations and broaden stablecoin adoption among individuals and institutions.

Coinbase’s investment in Stablecorp reflects its commitment to modernizing Canada’s financial system through blockchain technology and stablecoins, aiming to make Canadian dollar-denominated digital assets widely accessible and practical for everyday use.

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