Crypto exchange Coinsquare to launch Canadian Dollar-pegged stablecoin ‘eCAD’

Canadian crypto trading platform Coinsquare has announced that it is going to launch the first stablecoin pegged to the Canadian dollar.

Called “eCAD,” the stablecoin will provide domestic and global markets the stability of the Canadian dollar (CAD) with the benefits of a digital currency. It will allow investors to purchase eCAD on a 1:1 basis with CAD.

For every one eCAD created, one CAD will be held in reserve, the release said. Coinsquare said that it will offer a “transparent and reliable” asset that investors can use as “a store and transfer of value and as an alternative to several USD-backed stablecoins.”

“We are thrilled to announce the first step of our plan to bring stability and opportunity to the Canadian cryptocurrency market,” said Cole Diamond, CEO of Coinsquare. “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.”

Coinsquare said that the stablecoin offering will allow it to continue exploring how to optimize financial services including cross-border payments and remittance, peer-to-peer lending, merchant solutions, trade settlements, and FX conversions.

Earlier this year, Coinsquare acquired StellarX, a full-featured trading app for Stellar’s universal marketplace, which followed the acquisition of BlockEQ, a crypto wallet on the Stellar network, in December 2018.

In the past couple of months, a number of cryptocurrency exchanges and other entities have launched various stablecoins. This includes Universal Protocol Alliance’s Universal Euro (UPEUR) and Universal Dollar (UPUSD), Gemini dollar (GUSD), USD Coin (USDC), Paxos Standard (PAX), and others.