DeFi Technologies Advances Stablecoin Infrastructure with Key Banking Partnership

DeFi Technologies CA24464X1069

DeFi Technologies has announced a significant development from its venture portfolio, shifting focus toward foundational financial infrastructure. Its portfolio company, Stablecorp, has finalized a definitive custody agreement for the QCAD Digital Trust with VersaBank. This partnership centers on QCAD, described as Canada's first regulatory-compliant Canadian dollar-pegged stablecoin, highlighting a strategic move beyond mere market speculation to address core operational questions of reserve security and institutional credibility.

The agreement designates VersaBank, a federally regulated Schedule I bank in Canada, as the custodian for the QCAD stablecoin's underlying reserves. The bank will utilize its proprietary "VersaVault" solution for this purpose. Financially, VersaBank anticipates revenue from fees tied to the total value of QCAD assets under custody, supplemented by a spread on QCAD deposits.

Key Agreement Points:
* The binding custody pact is between Stablecorp and VersaBank for the QCAD Digital Trust.
* Custodian VersaBank is a federally regulated Schedule I bank.
* The bank's revenue model includes volume-based custody fees and a spread on QCAD deposits.

Broader Corporate Strategy and Context

DeFi Technologies frames its role in this initiative as both an investor in Stablecorp and a strategic partner. The company outlined a three-pronged strategy to scale QCAD adoption:
* Product Development: Integrating QCAD into offerings, including CAD-denominated ETPs and structured products.
* Liquidity & Market Access: Enhancing institutional execution capabilities and on/off-ramp services.
* Security & Scalability: Fortifying the operational structure to support growing usage.

Andrew Forson, President of DeFi Technologies, emphasized that stablecoins are increasingly judged by the robustness of their operational and custody frameworks. He stated the partnership is designed to accelerate institutional trust and enable the next phase of growth.

This news follows several corporate updates in recent months. In a year-end CEO letter (late December), the company noted the expansion of its Valour subsidiary to 102 ETPs, additional exchange listings (London Stock Exchange, SIX, Brazil’s B3), and a planned capital raise of $100 million in 2025. For the third quarter, DeFi Technologies reported $165.7 million in cash, cash equivalents, and digital asset treasury assets, alongside $44 million in venture investments, while stating it is debt-free.

Operationally, for the first three quarters of 2025, the firm disclosed approximately $80 million in revenue and $39 million in operating income. CEO Johan Wattenström recently referenced a "valuation gap," citing a market capitalization of around $285.8 million as of late December. The Q3 report (mid-November) showed revenue and operating income of $22.5 million and $9 million, respectively; that report also communicated a leadership change with Wattenström assuming the roles of CEO and Executive Chairman.

The next anticipated milestone is the upcoming earnings report. According to TipRanks, it is expected—though unconfirmed—for March 27 and will cover fourth-quarter 2025 results.