DeFi Technologies has entered into a strategic investment and partnership with Canada Stablecorp to advance QCAD, a Canadian dollar stablecoin intended to enhance the digital financial landscape in Canada. Alongside DeFi Technologies, notable investors in Stablecorp include Coinbase Ventures, Circle Ventures, and Side Door Ventures, all of which are significant players in the digital finance arena.
The timing of this collaborative effort comes as Canadian dollar stablecoins are expected to gain momentum due to the upcoming implementation of the Retail Payments Activities Act (RPAA), which will oversee payment service providers starting September 8, 2025. The Bank of Canada and the Financial Consumer Agency of Canada (FCAC) have focused their research on the implications and benefits of stablecoin usage, reflecting a clear shift towards a structured regulatory framework. While the development of a retail central bank digital currency (CBDC) has been paused, compliant CAD stablecoins are positioned to fulfill essential roles in various economic activities, including e-commerce, cross-border trade, payroll processing, and treasury operations—particularly vital in the robust Canada-U.S. trade corridor.
Within the partnership, DeFi Technologies aims to roll out a suite of QCAD-integrated products through its affiliate, Valour, which specializes in providing diverse digital asset investment options. Furthermore, Stillman Digital will act as the primary liquidity provider, smoothing on and off-ramping processes as well as managing minting and redeeming operations for QCAD. Additionally, the collaboration will include the development of a security roadmap in conjunction with BTQ Technologies, focusing on post-quantum security measures, essential for sustaining user trust and safety as QCAD’s adoption scales.
Kesem Frank, CEO of Canada Stablecorp, expressed enthusiasm about the collaboration, highlighting the potential of the partnership to enhance QCAD’s utility in regulatory compliant payment frameworks. Meanwhile, Olivier Roussy Newton, CEO of DeFi Technologies, remarked that this alliance opens up reliable Canadian-dollar channels within digital markets, and emphasizes their joint mission of building functional CAD-based financial products while enhancing liquidity.
The two companies plan to solidify their operational strategies within approximately 60 days post-financing closure, contingent upon attaining definitive agreements. This collaboration is particularly strategic for DeFi Technologies, as it adds a Canadian-dollar on-chain rail aligning with the firm’s existing market presence, creating avenues for new payment systems, yield-generating products, and further integrating with Canada’s regulatory objectives. By collaborating with Stillman Digital, DeFi Technologies also seeks to enhance liquidity management in the vital Canada-U.S. market and ensure its infrastructure is ready for future challenges in the financial landscape.
Canada Stablecorp is recognized as a frontrunner in the Canadian fintech sector, dedicated to advancing digital currency infrastructures that facilitate global payment solutions through its innovative APIs. On the other hand, DeFi Technologies is poised at the intersection of traditional finance and decentralized finance, operating as the first Nasdaq-listed digital asset manager, and fostering investor access to a wide range of digital assets through its various subsidiaries and partnerships.
In summary, this partnership not only reinforces DeFi Technologies’ commitment to bridging traditional and digital financial realms but also positions QCAD as a pivotal instrument for the evolving landscape of compliant Canadian digital currency. As both organizations embark on this venture, they aim to unlock significant potential within the Canadian financial ecosystem, adapting to the changing regulatory landscape and meeting the growing demand for digital financial solutions.
