Digital currency exchange, Coinsquare launched a stablecoin pegged 1:1 to the Canadian dollar (CAD). Canadian Dollar-Pegged Stablecoin soon to be released.
The potential roles that exchange plans for its new “eCAD” token are as follows:
- cross-border payments and remittance
- peer-to-peer lending
- merchant payment solutions
- trade settlements and forex conversions
In an official announcement, Coinsquare CEO Cole Diamond said:
“The launch of eCAD will create the first transparent, affordable, and secure way of transferring value in Canada and beyond, without the risk of instability in the traditional cryptocurrency market.”
The company made a promise that one Canadian dollar with back each eCAD in reserve. No details were given of if and how proof of its reserves would be disclosed. Coinsquare did, however, claim transparency in the announcement.
Coinsquare recently acquired StellarX, the decentralized exchange (DEX) for an undisclosed amount. StellarX is based in Bermuda and is now a wholly owned subsidiary of Coinsquare.
At the beginning of 2018, Canaccord Genuity, a financial services firm raised $30million in equity financing for Coinsquare, and is the exchange’s financier. When the funding was received, Coinsquare said it “will be used to fuel a global growth plan and diversification strategy focused on making the platform even more responsive to mainstream customers’ needs.”
The reg-tech startup, Coinfirm, recently labeled Coinsquare a “low risk” exchange because of its strict know-your-customer (KYC)/anti-money laundering (AML) policies in place, and regulatory licenses.
There have been an abundance of stablecoin launches throughout the past year. A stablecoin pegged 1:1 to the British pound was the latest to launch. While a euro-pegged stablecoin was announced, that crypto exchange Bittrex and five other blockchain firms can stake to earn returns.
Tether (USDT) is controversial due to the lack of independent audits of its reserves. Recently disclosed that the collateral backing the token may not be 100 percent in U.S. dollars. Tether (USDT) is the oldest stablecoin, and the one which still remains the most used.