Side Door Ventures
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Side Door Ventures

Stablecorp

Stablecorp Closes Pre-Series A Funding To Accelerate Vision of Expanding “On-Chain” Financial Infrastructure

April 2022

The digital assets landscape continues to evolve with improved infrastructure, new use-cases and growing adoption as the total market cap now surpasses $1.8 trillion dollars. Today, stablecoins themselves represent roughly ten percent ($187.0M at the time of publishing) of that total industry market cap and only growing as more ecosystems launch new network-native stablescoins (NEAR/USN, Tron/USDD, Stacks/xUSD, etc), and now financial institutions such as banks begin to enter the space as well. With all this industry development, a more scalable infrastructure & tooling will be required to support increased customer demand as our digital economy the forefront.

Leading in the category, Stablecorp, a Canadian fintech firm and strategic partner in the commercial development and launch of VCAD, the country’s first Canadian dollar Digital Deposit Receipt (DDR), today announced the receiving of their $1.5 million strategic growth capital round from a group that includes industry heavyweights Circle Ventures, Genesis, and the Stellar Development Foundation as new investors. Side Door Ventures also joins existing partners 3iQ, Borderless Capital, 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 (DeFi), 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’s Partner Ecosystem — source

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.”

About Stablecorp — 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

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Kyle Ellicott

Kyle Ellicott

Writing about #Blockchain, #DApps, #Digitization, and all things #Distributed. Host of Blockchain & Crypto Today