The Chief Executive Officer of Coinsquare, Cole Diamond on Thursday revealed the company’s plan to launch eCAD, a new stablecoin that’s pegged to the Canadian dollar.
According to Cole,
“The launch of eCAD will create the first transparent, affordable, and secure way of transferring value in Canada and beyond, without the risks of instability in the traditional cryptocurrency market”
Cross-Border Payments and More…
eCAD has been pegged in the ratio 1:1 to the Canadian dollar and will facilitate all manners of cross-boader settlements (payments), P2P lending, forex conversions, merchant payment solutions, trade settlement as well as remittances.
The launch was inspired by the “sea of stable coin launches” that occurred last year. The most recent being TrustToken, a cryptocurrency startup, which launched a stable coin pegged to the British Pound, also in the ratio 1:1. Similarly, the crypto exchange, Bittrex, alongside five other Blockchain organizations, revealed a Euro-pegged stable coin, which had staking features.
However, Coinsquare has assured the public that each eCAD will have one Canadian dollar backing it in reserve. This has been the stance of all stablecoin companies.
Low Risk Exchange
Coinsquare was recently identified as a “low-risk” exchange as a result of its strict Know-Your-customer (KYC) procedure, anti-money laundring (AML) policies and licenses which it possesses.
According to report, Coinsquare (as the parent company of StellarX; a decentralized exchange [DEX], which it acquired for an undisclosed amount) had raised $30 million in equity financial backing last year, as it was backed by financial services firm, Canaccord Genuity. At the time, the exchange announcing its proposed use of the fund raised, said:
“…funds…will be used to fuel a global growth plan and diversification strategy focused on making the platform even more responsive to mainstream customers’ needs. “