Defi Tech backs QCAD custody deal with VersaBank

Executive Summary

• Defi Technologies' venture portfolio company, Stablecorp, has entered a definitive agreement with VersaBank to serve as the custodian for the QCAD Digital Trust.
• This partnership establishes institutional-grade, regulatory-compliant custody for QCAD, identified as Canada's first compliant Canadian-dollar stablecoin.
• The agreement supports the broader adoption of tokenized Canadian dollars by providing secure reserve custody, with VersaBank earning custody fees and spreads on deposits.

Key Details

• Parties Involved: Defi Technologies (investor/strategic collaborator), Stablecorp (venture portfolio company), QCAD Digital Trust, and VersaBank (custodian).
• Agreement Terms: VersaBank will act as custodian for the QCAD Digital Trust using its proprietary "VersaVault" solution.
• Revenue Model for Custodian: VersaBank will earn custody fees based on the value of assets held and a spread on QCAD deposits.
• Strategic Impact: The selection of a federally regulated Schedule I bank aims to strengthen operational and regulatory confidence, facilitating scaled adoption and deeper institutional adoption of tokenized Canadian dollars.
• Future Roadmap: Defi Technologies and Stablecorp plan to focus on scaling QCAD across three core areas:
  1. QCAD-integrated product development (including Canadian-dollar-linked ETPs and structured solutions).
  2. Liquidity and market access (including institutional-grade execution and on/off-ramps).
  3. Security and future-proofing as adoption scales.
• Custody Infrastructure: VersaVault is described as a SOC2 Type 1 audited, security-centric digital asset storage solution utilizing military-grade hardware in a private, logically air-gapped data center.

Notable Quotes

• Kesem Frank, CEO, Stablecorp: "Securing this custodial relationship with a federally regulated, Schedule I bank is a significant milestone for our industry, placing Stablecorp at the forefront of modernizing Canada's financial infrastructure... The VersaVault solution provides an ideal fusion of regulatory integrity and technological security..."
• Johan Wattenstrom, CEO and Executive Chairman, Defi Technologies: "QCAD's approval as Canada's first compliant CAD stablecoin was a defining milestone for the Canadian market and the selection of a federally regulated Schedule I bank as custodian is another important step in building durable, institutional-grade infrastructure around tokenized Canadian dollars."
• Andrew Forson, President, Defi Technologies: "Stablecoins will increasingly be judged not only by the utility, but by the strength of the operating and custody frameworks behind them... This kind of custody relationship helps accelerate institutional comfort and enables the next phase of growth..."