DeFi Technologies has announced a strategic partnership with Canada Stablecorp, a move designed to enhance the scalability of QCAD, a Canadian dollar stablecoin. This collaboration comes alongside a strong backing from other notable investors such as Coinbase Ventures, Circle Ventures, and Side Door Ventures, positioning Stablecorp as a key player in the digital finance landscape.
The Canadian dollar stablecoin sector is poised for growth, particularly with the impending Retail Payments Activities Act (RPAA) set to take effect on September 8, 2025. This regulation will introduce formal oversight for payment service providers and is expected to create a robust foundation for compliant CAD-denominated digital currencies. The Bank of Canada and the Financial Consumer Agency of Canada (FCAC) have also been increasingly focused on the use, risks, and benefits of stablecoins, indicating a favorable policy environment for their adoption.
As the government has temporarily paused work on a retail Central Bank Digital Currency (CBDC), compliant Canadian stablecoins like QCAD are positioned to play a vital role in supporting various financial activities, including e-commerce, cross-border trade, payroll services, and treasury operations. Access to services in the Canada-U.S. trade corridor—where transactions regularly exceed C$1 trillion annually—stands to benefit significantly from this stablecoin infrastructure.
The partnership between DeFi Technologies and Stablecorp will concentrate on three core strategic areas aimed at boosting QCAD’s utilization:
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Product Development: DeFi Technologies plans to assist in creating a suite of products that integrate QCAD, leveraging its subsidiary, Valour, for this purpose.
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Liquidity: The collaboration designates Stillman Digital as a preferred liquidity provider, which will facilitate smoother access for both the minting and redeeming processes of QCAD.
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Security Roadmap: The partnership includes a collaboration with BTQ Technologies to develop post-quantum security standards for QCAD as its adoption expands.
Kesem Frank, CEO of Canada Stablecorp, expressed enthusiasm for the collaboration, stating his team’s admiration for DeFi Technologies’ vision and capabilities. He emphasized the importance of scaling QCAD’s utility in the regulated payments environment. Similarly, Olivier Roussy Newton, CEO of DeFi Technologies, highlighted the importance of QCAD in creating practical payments solutions and deepening liquidity for Canadian dollar transactions.
Both companies plan to finalize a mutual roadmap within approximately 60 days, pending the closing of necessary financing. This collaboration will enable DeFi Technologies to offer a Canadian dollar on-chain solution that complements its existing offerings while unlocking new opportunities in payment systems, savings, and cross-border settlements.
Through this partnership, DeFi Technologies aims to establish a bridge between traditional finance and decentralized finance, reinforcing its market position by expanding the addressable market and generating new revenue streams from fees and spreads. The strategic alignment with Canada’s evolving regulatory framework further solidifies the role of compliant digital currencies in the future of financial transactions and services both domestically and internationally.
Stablecorp, recognized as a pioneering fintech entity in Canada, is focused on building digital money infrastructure to enhance the global payments ecosystem. Meanwhile, DeFi Technologies continues to pursue its mission of integrating traditional capital markets with decentralized financial systems, positioning itself strategically in the ever-evolving digital asset landscape.
