Coinsquare set to launch world’s first Canadian dollar-backed stablecoin

Canadian cryptocurrency exchange Coinsquare is launching its own stablecoin called eCAD, which will be backed by the Canadian dollar

Leading Canadian cryptocurrency exchange Coinsquare will launch the first stablecoin pegged to the Canadian dollar (CAD), according to an official statement.

The stablecoin – called eCAD – will provide users with a stable hedge opportunity against the volatile nature of the cryptocurrency market.

“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.”

The eCAD token will be created on a 1:1 basis, meaning that when one token is redeemed, it will be backed by Canadian dollars in reserve.

In September, Coin Rivet reported on Coinsquare’s relationship with a “major” Canadian bank, which could have been a decisive factor in the issuance of its own stablecoin.

However, the exchange suffered a difficult start to the year after having to lay off 40 members of staff due to the gruelling cryptocurrency bear market.

At the time, Coinsquare’s head of talent, Martin Hauck, said: “The ever-evolving digital currency/cryptocurrency space has been volatile and unpredictable. Many similar companies in our industry have had to make some tough choices in recent months, and Coinsquare has had to as well. The company has made the decision to part ways with a number of talented members of the Coinsquare team. All of which have made their own impact and contribution to our success so far, for which we are extremely grateful.”

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