USD 1.5 Million Raise Includes Growth Investment from New Equity Partners Circle Ventures, Genesis, Stellar Development Foundation, Side Door Ventures Alongside Existing Investors
Investment to Accelerate Stablecorp's Vision of Expanding "On-Chain" Financial Infrastructure via Canadian Dollar-Linked Token Offering, VCAD
TORONTO, April 25, 2022 /PRNewswire/ --Stablecorp, a leading Canadian fintech firm and strategic partner in the commercial development and launch of VCAD, the country's first Canadian dollar Digital Deposit Receipt (DDR), announced today that it has received USD 1.5 million in strategic growth capital from a group of equity partners that includes industry heavyweights Circle Ventures, Genesis, and the Stellar Development Foundation as new investors. Side Door Ventures also joins existing partners 3iQ, Borderless, and others who participated in the round.
Stablecorp will deploy the capital to further advance its vision of bridging the gap between legacy financial systems and the "on-chain" financial framework of the future through the launch of VCAD, a multi-chain DDR that will be issued through digital banking leader VersaBank and backed 1:1 by Canadian dollar deposits. VCAD is expected to drive a "step change" toward the blockchain-enabled future by facilitating secure and transparent payments, transfers, and settlements in CAD-equivalent tokens, expanding FX options for companies and consumers around the world while introducing a new standard for volatility protection.
This round of strategic funding is also expected to allow Stablecorp to execute targeted near-term growth strategies in decentralized finance, yield generation, foreign exchange, payments, settlement, remittances, and digital asset trading. The firm also intends to pursue global expansion into additional DDRs in partnership with VersaBank in the future.
Stablecorp President and Chief Operating Officer Alex McDougall said, "We are thrilled to welcome Circle Ventures, Genesis, and the Stellar Development Foundation to our network of partners and investors. These forward-thinking companies are some of the most sophisticated and knowledgeable organizations in the cryptocurrency ecosystem, and we are gratified that they share our vision for the central importance of DDRs as a bridge between fiat currencies and the digital financial framework of the future. With their involvement, we will continue to work toward a financial system in which the unique benefits of blockchain technology create value propositions that are simply better than traditional alternatives."
Circle's Chief Strategy Officer and Head of Global Policy Dante Disparte said, "Stablecorp has rapidly established itself as a leading innovator in expanding on-chain financial infrastructure to companies, institutions, and individuals who want to transact in digital currency linked to the Canadian dollar. As the issuer of USD Coin (USDC), one of the fastest growing dollar digital currencies, Circle is highly supportive of Stablecorp's mission of expanding the benefits of stable digital currencies to every market across the globe. Stablecorp has provided a powerful model of how this goal can be accomplished through its development of VCAD with VersaBank, and its position as a unique company with cutting-edge blockchain technology capabilities made this Circle Ventures investment an easy decision for us."
Genesis Managing Director, Head of Derivatives Trading Joshua Lim said, "Stablecoins, and now Digital Deposit Receipts, have played a crucial role in the growth of digital asset lending around the world, enabling firms like Genesis to expand our offerings beyond shorting and hedging to much broader use cases across the lending and derivatives spectrum. Stablecorp is charting a path for broader adoption of DDRs linked to the Canadian dollar, enabling crypto lenders to serve significant cross-border markets with much greater efficiency, transparency, and speed. Stablecorp's standout technology and product vision were key determining factors for us in making this investment, and we are pleased to partner with them to shape the future of DDR-based financial services across the globe."
Stablecorp was founded by 3iQ, Canada's largest cryptoasset manager and Mavennet, a leader in blockchain development. Stablecorp is a leading Canadian fintech firm building bank-grade blockchain technology. In February 2021, Stablecorp entered into a strategic partnership with VersaBank, an A rated Canadian Schedule 1 bank, to develop VCAD. VCAD is a Digital Deposit Receipt issued using VersaBank's VersaVault® technology. This bank-backed issuance model makes VCAD unique in terms of auditability, transparency, and reliability in the global DDR space. Learn more at Stablecorp.ca.
About Circle Ventures
Circle Ventures supports early-stage blockchain projects and companies that can help accelerate global cryptocurrency innovation and further Circle's mission of raising global economic prosperity through the frictionless exchange of financial value. Circle Ventures is part of Circle Internet Financial, LLC, a global financial technology firm that enables businesses of all sizes to harness the power of digital currencies and public blockchains for payments, commerce and financial applications worldwide. Learn more at https://www.circle.com/en/circle-ventures.
Genesis is a full-service digital currency prime brokerage providing a single point of access for select qualified individuals and global institutional investors. Genesis combines unrivaled operational excellence, a seamless user experience, and best-in-class client service to provide the full suite of services global investors require to manage their digital asset portfolios.
The firm offers sophisticated market participants a fully integrated platform to trade, borrow, lend, and custody digital assets, creating new opportunities for yield while increasing capital efficiency for counterparties.
Genesis is a wholly owned subsidiary of Digital Currency Group (DCG), one of the largest private investors in blockchain and digital asset companies. Learn more at Genesistrading.com.
KCD PR for Canada Stablecorp