Coinbase expands into Canadian stablecoin market
Regulatory challenges hinder stablecoin adoption in Canada, with Coinbase calling for clearer frameworks.
Coinbase has invested an undisclosed amount in Canadian stablecoin issuer Stablecorp. The move aims to strengthen the local stablecoin market and make tokenised Canadian dollars more accessible.
During the Blockchain Futurist Conference in Toronto, Coinbase Canada’s Chief Executive Officer, Lucas Matheson, discussed how the exchange would support Stablecorp’s fiat-collateralised stablecoin, QCAD.
Matheson highlighted the need for a Canadian stablecoin due to the country’s lack of peer-to-peer payment systems and costly wire transfers. Stablecoins, he argued, could enable 24/7, instant, and borderless payments, which are already feasible with current technology.
However, adoption faces regulatory challenges in Canada. The country has yet to define a clear framework for fiat-backed stablecoins. Coinbase has urged the government to classify these assets as payment instruments, not securities, in line with US regulations.
Coinbase’s investment comes as Canada continues to navigate its digital asset stance under Prime Minister Mark Carney, who remains critical of cryptocurrencies.
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