New Stablecoin “eCAD” Launches by Coinsquare, Will Be Pegged to the Canadian Dollar
Coinsquare operates within Canada as one of the top crypto exchanges, handling $5 billion annually in crypto trades for over 100,000 customers. However, they are changing the way that the industry handles these transactions with the introduction of a new stablecoin. The stablecoin, which is being called eCAD, is backed by the Canadian dollar. With the new coin, investors will be provided with an alternative to what is presently available with the USD-backed stablecoins.
The CEO of Coinsquare, Cole Diamond, said that this launch will be the first “transparent, affordable, and secure way” in Canada to move value without the challenges that come with the volatility of the market. Even with all of the information available about this new opportunity, the actual date that this stablecoin will be made available has not been announced.
Many people see the use of stablecoins as a way to create a secure and unchanging connection between traditional investors and ones in the crypto industry. The fact alone of being pegged to currency, commodity, and/or algorithm creates more confidence in the asset, rather than one that is “un-pegged.”
Maintaining audits for stablecoin projects is crucial to their survival, considering that there have been some projects that have been going through more issues to show that they are actually prepared with reserves. A prime example is Tether (USDT), which is a stablecoin that the government ended up subpoenaing after rumors arose that there was not a sufficient amount of reserves at the 1:1 ratio.
In March this year, Tether was put under fire again after the social media users noticed that the Tether policy no longer stated that they were backed by US dollars. Instead, the policy says that the reserves include “traditional currency and cash equivalents,” though it “may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities” occasionally.
Considering the lack of trust placed in Tether lately, the arrival of new stablecoins in the market is hardly surprising. Last week, the CEO of OKEx even announced that the company is working on a new crypto asset that is planned to be tied to the US dollar as well with Prime Trust, an SEC-regulated custodian,