Deloitte Canada and Stablecorp have partnered to build stablecoin infrastructure based on QCAD, the fintech’s Canadian dollar-backed digital currency, the firms announced Monday.
The professional services firm’s goal is to help its banking industry clients implement tokenized deposits, navigate risks of blockchain technology and comply with regulations, said Soumak Chatterjee, partner in payments and digital assets at Deloitte Canada.
Blockchain can enable instantaneous transactions around the clock across financial institutions, faster international transfers and business to business payments, garnering interest from banks and capital markets.
When stablecoins become available, cryptocurrency investors can use it as a bridge. Every cryptocurrency trade needs a cash leg and stablecoins can bridge funds as investors come in and out of positions, Chatterjee said.
Stablecoins will also form the foundation for tokenizing other assets like equities and derivatives, Chatterjee said. “If stablecoins get mainstream adoption as a mechanism for moving value and money, you’ll suddenly see liquidity being unlocked.”
This would benefit large pension funds as they need to manage collateral and liquidity against their investment positions, Chatterjee added. “Every treasury manager in every large institution very interested in this topic.”
The 2025 budget bill, which included a Stablecoin Act, received Royal Assent Thursday.
However, the Stablecoin Act is aimed at non-bank entities, as chartered banks are already under the Office of the Superintendent of Financial Institutions’ supervision, and don’t need separate legislation, Chatterjee said.
“It is giving non-banks almost an equal playing field,” he said. “It’s creating urgency for the banks to start to drive these innovations forward.”
Currently, Canadians who use stablecoins are depending on U.S. dollar instruments, so building a framework for Canadian-dollar denominated stablecoins will enhance our payments sovereignty, Chatterjee said.
Calgary-based Tetra Trust is also building its own Canadian-dollar backed stablecoin, CADD. As more players enter the market, it becomes more important to work on common standards to ensure interoperability domestically and internationally, Chatterjee said.
“Canada cannot build silos on their own. We are connected to the to the U.S., Europe and other global economies,” he said. “Building interoperability by design is a very core component [that] all ecosystem participants [should] consider.”