TORONTO – Stablecorp Digital Currencies Inc. has announced that the QCAD Digital Trust has received regulatory approval for what it claims is Canada’s first compliant Canadian dollar stablecoin. This development marks a significant milestone in the digital currency landscape in Canada, setting the stage for a regulated and trustworthy stablecoin that aligns with government standards.
The approval consists of a final receipt for its prospectus within the Canadian regulatory framework specifically designed for stablecoins. This regulatory oversight is critical, as it ensures that the new digital asset complies with laws aimed at protecting consumers and maintaining the integrity of financial markets.
The QCAD stablecoin is designed to maintain a stable value equivalent to one Canadian dollar. The mechanism behind this stability is straightforward: QCAD is backed by one-to-one dollar reserves, which are held in regulated financial institutions. This backing provides assurance to users that each QCAD token corresponds directly to a Canadian dollar, thereby reducing volatility commonly associated with cryptocurrencies.
Furthermore, the QCAD Digital Trust manages the reserve assets on behalf of the QCAD holders, ensuring transparency and accountability in the management of these funds. The introduction of QCAD aims to facilitate easier and more affordable transactions, allowing individuals and businesses to send and receive funds not only across Canada but also internationally. This capability is expected to reduce transaction costs compared to traditional financial methods, which often involve higher fees and longer processing times.
According to Stablecorp chair Jean Desgagne, this initiative demonstrates that innovation and regulation can coexist effectively. He emphasized the importance of having a robust regulatory framework to support the growth and adoption of digital currencies in Canada, suggesting that this foundation is crucial for the future of the digital Canadian economy.
In alignment with this regulatory approval, the federal government has also expressed its commitment to regulating stablecoins through legislative measures outlined in its November budget. The government believes that such regulations will contribute to safer transactions and enhance trust in digital payment systems among consumers and businesses alike.
This announcement comes as part of a broader trend in the financial sector, where digital currencies are gaining traction. As more people seek digital solutions for everyday transactions, compliant stablecoins like QCAD could play a pivotal role in the evolution of banking and payment systems in the country.
The implications of these developments are significant, as they could reshape the landscape of digital finance in Canada. With established regulatory backing, QCAD may pave the way for more innovation in the financial technologies sector while ensuring consumer protection and market stability.
This report, which originally appeared on Nov. 24, 2025, highlights an essential step in establishing a secure and regulated environment for digital currencies in Canada.
