Coinbase’s Big Bet on Canadian Stablecoin – Will It Pay Off?

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Well, it looks like Coinbase is making moves. They’re teaming up with a Canadian stablecoin issuer called Stablecorp. It’s all part of some grand plan to make sure Canadians get access to tokenized Canadian dollars. How sweet of them, right? A company exec spilled the beans at the Blockchain Futurist Conference in Toronto. Because, you know, that’s where all the magic happens.

Lucas Matheson, the big boss of Coinbase Canada, told CryptoMoon that they’re throwing some undisclosed amount of cash at Stablecorp. The goal? To make sure the good people of Canada can buy into their stablecoin, QCAD. If that doesn’t sound like a fun day, I don’t know what does.

Matheson seemed pretty eager about the whole thing. In an exclusive chat on May 13, he mentioned that Canada needs a stablecoin. No surprise there! “It’s really important,” he said. Why? Because Canadians don’t have a “peer-to-peer payment rail.” Whatever that means. Oh, and don’t forget about those wire transfers that cost $45 and take forever. Sounds like a deal with the devil if you ask me.

But hey, stablecoins come to the rescue! Instant, 24/7, borderless payments. “Existing tech can do it!” Matheson said. I’ll just leave that with you for now.

Blockchain conference

Barriers to Adoption

As of May 13, stablecoins are sitting pretty with a market capitalization of about $245 billion. The majority of that pie is filled with US dollar-backed stablecoins like Tether (USDT) and USDC (USDC). But don’t hold your breath for a Canadian coin takeover just yet.

Stablecorp’s latest report from July 2024 shows only $175,000 worth of QCAD in circulation. Yeah, not exactly a tidal wave of digital currency. But hey, it’s a start, right? Maybe. We’ll see.

Stablecoin report

Canada’s biggest hurdle right now? The government. Surprise, surprise! The country’s regulators haven’t cleared the way for stablecoin adoption. They still treat them like securities, which is like calling your grandma a race car driver. Coinbase is pushing for them to be treated as payment instruments instead. You know, just a little tweak in the bureaucratic system. No big deal.

In April, the US SEC took a step in the right direction by saying that stablecoins aren’t securities if they’re just for payments. Wow, look at that, progress.

Matheson was also spotted lobbying for a national strategy on digital assets, as if asking the Canadian government to pay attention is the easy part. “Crypto is strategic, and we hope this new administration sees that,” he said. Sure, Lucas. Best of luck with that.

Speaking of the Canadian government, they’ve got a new Prime Minister, Mark Carney. And if history’s any indication, he’s not exactly a fan of cryptocurrency. So, yeah, there’s that.

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2025-05-14 00:42