What is QCAD?

QCAD is a digital token pegged 1:1 to the Canadian dollar, with reserves held at regulated financial institutions under the QCAD Digital Trust.

Like other stablecoins, QCAD aims to bridge traditional financial institutions and modern blockchain networks by providing interoperable and secure digital rails. It offers institutional-grade infrastructure to facilitate transactions and digital asset operations.

The strategy proved prescient. When Canadian regulators finally approved stablecoin standards, QCAD’s architecture aligned almost perfectly with expectations.

The service’s primary users are fintech companies and exchanges. Qualified holders can access and use QCAD through a growing network of authorized channels, which include regulated crypto trading platforms (CTPs), fintech APIs and institutional custody providers.

QCAD’s architecture wasn’t built in isolation – Stablecorp deliberately populated its cap table with industry leaders to learn from their experiences and avoid repeating mistakes.

“We learn from (our partners) every day. We talk to them on an ongoing basis, and we try to learn from their strengths and learn from some of the challenges that they have. For example, the USDC from Circle…is a really good model reference test that I think is going to inform a lot of decisions that we make going forward.

“I don’t look at QCAD as a competitor to USDC,” he added. “It really is a complementary product. When you think of use cases like FX, you can take one USDC and exchange it for a corresponding amount of QCAD. You can do that with no friction, with much lower spreads than the big banks would charge and (with) immediate settlement.”

This interoperability is a use case that benefits both tokens rather than cannibalizing one.

QCAD’s regulatory journey

QCAD represents a major development in Canada’s digital money infrastructure, receiving full compliance in November 2025 from the CSA following years of regulatory collaboration.

To achieve this milestone, Stablecorp’s six-year infrastructure build included creating a trust to hold reserves at regulated banks, securing exemptive relief from inapplicable securities rules and committing to monthly reserve attestations plus annual audits, all filed publicly on SEDAR+. Stablecorp has also partnered with exchanges to list QCAD publicly.

Additionally, one of the company’s key investors, DeFi Technologies, made a strategic investment to scale QCAD and develop CAD-linked products like ETPs in September 2025, positioning it for payments, treasury and e-commerce use cases under Canada’s (Retail Payment Activities Act (RPAA) regulations.

QCAD is also working to safeguard its transactions from future threats. While the full capability of post-quantum computing isn’t here yet, QCAD is being proactive by working with partners like BTQ to implement the Quantum Stablecoin Settlement Network to ensure its transactions have world-class, future-proof security against eventual quantum threats.

“My sense is that post-quantum computing is not quite here yet. And we’re thrilled to be working with partners to actually make sure that as it becomes more real, we absolutely leverage it. (Our goal is) to have a security profile that is as strong and world-class as we can. We’re just thrilled to be working with really good partners to help us get that done.”

Recently, the Ontario Securities Commission exempted QCAD from the underwriter certificate requirements under National Instrument 41-101, which was followed by the final prospectus approval from all CSA provinces on November 24, officially launching QCAD as the first compliant CAD token. The project is now focused on the rollout to exchanges and building liquidity integrations.

Compliance and the non-security security

The regulatory status and approval process of QCAD have influenced the pace and scope of its adoption by companies as users.

QCAD operates under Canada’s unique interim stablecoin framework, requiring issuers to file a prospectus under securities laws while awaiting federal payment-focused rules.

A rigorous approval process, while essential for compliance, creates a high bar for legitimate issuers and users.

“I call us a non-security security,” said Desgagné. “Basically, we comply with all the requirements of the security regulators without (labelling ourselves) as a security.”

This clever regulatory workaround allows Stablecorp to proceed under the existing CSA framework. In order for companies to use or integrate QCAD, they must also be registered or authorized as crypto trading platforms (CTPs) or financial entities that comply with Canadian securities and fintech regulations themselves.

“By having the provincial regulators get their framework out and have us approved under it, it eliminates the key barrier that we had, which is that CTPs were basically not allowed to have these on their platform in Canada unless they were approved by the OSC. Now that the securities commission (has) approved it, our CTPs (can) have QCAD listed. That was a huge barrier.”

Regulatory overlap and the path to unification

Beyond securities regulation, QCAD must navigate Canada’s RPAA, the framework governing payment service providers. The Bank of Canada recently enacted RPAA Phase 1, creating potential overlap and ambiguity around how stablecoins fit into the payments infrastructure. The regulatory intent, however, appears aligned.

“We’re encouraged that the Bank of Canada will supervise this Stablecoin Act as well as the Payments Act, because that creates much more opportunity to bring the two together. There are no barriers that prevent us from using stablecoins in payment-related use cases. And we intend to move forward doing that.”

Legislation expected in 2026 will aim to unify rules nationwide, treating stablecoins as payments, not just securities.

“The challenge that we have in Canada is we’re moving towards what I call a three-regulator regime, which is not ideal. The securities regulators claim jurisdiction over this space. The federal government has published its Stablecoin Act, which still needs to be passed by Parliament and proclaimed. And the banks are completely exempted from the Stablecoin Act. So how you reconcile these three regimes and end up with one coherent framework is one of the outstanding issues.”

Budget 2025 attempts to clear a path for DeFi to scale legally nationwide without provincial patchwork, with a two-year, C$10 million commitment to the Bank of Canada for stablecoin oversight, as well as proposed amendments to the RPAA to explicitly cover stablecoin payments.

The bottom line

Stablecorp’s leadership sees stablecoins as foundational infrastructure enabling broader digitization.

As federal regulation takes shape in Canada alongside maturing provincial frameworks, QCAD will become a testbed for how digital rails can replace legacy settlement systems.

“I fundamentally believe that capital markets and, by extension, the economy will at some point go fully digitized,” said Desgagné. “That doesn’t happen until we build in digital land all of the boring financial market infrastructure that we have in what I call analog land: transparent, regulated exchanges, clear payment mechanisms, price discovery, good custody, etc. A stablecoin is a really powerful part of that.”

The real impact won’t be measured in token volume, but in how many transactions can settle instantly, how many barriers to entry fall away, and how many previously excluded participants gain access to financial infrastructure.

“If I want to digitize the stock exchange, where I can sell you 100 shares of Apple, and you can pay me immediately in QCAD, it eliminates the need for stock exchanges, clearing houses, collateral, T+1 settlement, margins…all of that stuff goes away. That’s just one example; banking unbanked people and making FX easier (are two more).”

Ultimately, QCAD is not just a digital token, but a pioneering test case for how regulated stablecoins can serve as the foundational digital infrastructure to eliminate legacy barriers and drive the full digitization of Canada’s capital markets and economy.