Coinbase is making a strategic move to expand digital payments in Canada by investing in Stablecorp, the issuer of the Canadian dollar-backed stablecoin QCAD.
Coinbase Backs QCAD to Modernize Payments
Speaking at the Blockchain Futurist Conference in Toronto, Coinbase Canada CEO Lucas Matheson confirmed that the company has taken an equity stake in Stablecorp. Although the investment amount remains undisclosed, the partnership aims to promote the adoption of QCAD, a fiat-backed stablecoin.
“It’s really important that we have a stablecoin for Canadians,” Matheson said during the May 13 interview. He highlighted the inefficiencies of Canada’s current banking system, where wire transfers can cost $45 and involve excessive paperwork. “With stablecoins, 24/7, instant, borderless payments become possible — this is already feasible with existing tech.”
Adoption Faces Regulatory Hurdles
Despite their potential, stablecoins face significant obstacles in Canada. As of May 13, stablecoins globally have a combined market cap of around $245 billion — most of which is dominated by USD-backed tokens like Tether and USD Coin. By comparison, QCAD has seen limited circulation, with Stablecorp’s last reserve disclosure in July 2024 showing only $175,000 worth of the token issued.
Coinbase pointed out in a March blog post that Canada lacks regulatory clarity on stablecoins. The firm argues that the Canadian government should treat fiat-backed stablecoins as payment tools rather than securities — a stance recently echoed by the U.S. Securities and Exchange Commission in April.
Call for a National Digital Asset Strategy
Matheson called on Canada’s federal government to develop a comprehensive national strategy for digital assets. “Crypto is strategic, and we hope this new administration sees that,” he stated.
Canada’s newly elected Prime Minister, Mark Carney, has previously voiced skepticism toward cryptocurrencies, adding uncertainty about the country’s regulatory direction.
Nevertheless, Coinbase’s investment signals a growing interest in making blockchain-powered payment systems more accessible to Canadians, particularly in a market where affordable, peer-to-peer financial solutions are still lacking.
