Agreement terms and immediate impact

Under the terms of the agreement, VersaBank will hold and safeguard the reserve assets backing QCAD through the Ontario-based QCAD Digital Trust, which will manage those reserves on behalf of QCAD holders.

The company will provide safekeeping and custodial services using its VersaVault technology, which it describes as a highly secure solution with Systems and Organization Controls 2 certification that has been designed specifically for digital asset custody. Put simply, VersaVault will become the vault, while the QCAD Digital Trust and Stablecorp will remain responsible for governance, issuance and compliance.

For VersaBank, the arrangement creates a new revenue stream, allowing it to earn custody fees based on the value of QCAD assets held, along with a spread on QCAD‑related deposits. That income will be added to its net interest income on cash and securities rather than its lending‑related margin.

For Stablecorp, the main takeaway is the regulatory optics: QCAD is already marketed as Canada’s first regulatory‑compliant, Canadian-dollar‑pegged stablecoin, and now its reserves will be held by a federally regulated Schedule I bank rather than a crypto‑native custodian.

Strategic and market implications

Stablecorp markets QCAD as a compliant, bank-grade Canadian dollar rail for cross-border payments, DeFi and institutional trading. The VersaBank deal reinforces that narrative by naming a Schedule I bank at the center of its reserve‑holding stack. From an investor standpoint, the deal makes it easier for institutions and regulated counterparties to see QCAD as a “safe” Canadian-dollar‑denominated instrument, rather than solely a crypto‑native token.

Additionally, regulators and policymakers should see a Canadian dollar stablecoin that is both technically robust and institutionally anchored, which could help shape future rules around CAD‑pegged tokens.

Stablecorp’s investor base already includes heavy hitters such as Coinbase Global (NASDAQ:COIN), Circle (NYSE:CRCL), DeFi Technologies (NASDAQ:DEFT) and FTP Ventures.

The VersaBank partnership adds another layer of credibility that could help Stablecorp attract more traditional financial services capital as Canada’s broader stablecoin and digital asset regulatory framework evolves.

The QCAD mandate represents a symbolically important strategic and balance sheet development, distinct from its core lending activities, offering long-term growth potential. By classifying QCAD-related net interest income within its cash and securities category, VersaBank signals that this activity is capital light and non-credit related. This approach diversifies revenue without significantly altering the bank’s credit risk profile.

This move may attract investors cautious of banks with high crypto-lending exposure, but comfortable with custody and infrastructure. The QCAD deal validates a broader digital asset custody franchise, especially if VersaVault gains more mandates for Canadian-dollar-pegged or other tokenized assets and stablecoins.

Broader implications for Canadian investors

The VersaBank-Stablecorp partnership is significant for Canada-focused investors as it represents a blending of traditional finance and crypto-native infrastructure. Stablecoins such as QCAD act as programmable Canadian dollars. The involvement of a Schedule I bank as custodian enhances the prospect of using CAD stablecoins for interbank or institutional settlement, particularly as Canada explores wholesale central bank digital currency technologies.

Furthermore, the arrangement opens the door for new tokenized financial products like money market funds, deposits or treasury management products that will reside on public blockchains, but are securely backed by regulated entities.

From a risk management perspective, investors may want to watch reserve composition disclosures for QCAD, and monitor how quickly QCAD’s circulating supply and VersaBank’s associated fee income scale.

For now, the deal is more of a strategic and signaling move than a near‑term earnings inflection point, but it lays the groundwork for QCAD to become a core Canadian-dollar‑denominated rail in Canada’s digital asset stack.

What stage is the market in?

While some investors see parabolic prices as a signal to exit entirely, Lara cautioned against all-or-nothing thinking. Instead, she emphasized understanding where the market sits within the broader arc of a bull cycle.

Referencing Doug Casey’s framework, she outlined three phases: the stealth stage, the wall of worry and the mania.

In her view, today’s market sits uncomfortably between the latter two.

“Some people think we’re already in mania because of the price,” Lara said. “I don’t think we’re quite there yet.”

She pointed to lagging indicators, including subdued valuations across the TSX Venture Exchange and conservative assumptions in mining feasibility studies, as signs that the cycle still has room to run.

That said, Lara acknowledged the risks of complacency.

She recounted stories of investors who rode bull markets too long, only to find “no bids” when they tried to exit. Her solution: gradual repositioning. “Don’t wait too long,” she said. “Start to leave your positions slowly.”

For her own portfolio — and hypothetically, for her daughter’s — Lara favors selling in thirds rather than making dramatic moves. Trimming positions can relieve pressure without sacrificing exposure to further upside. Fully exiting, she warned, risks missing the very payoff investors have waited years to see.

Equally important is what happens after selling. Holding large amounts of cash, Lara admitted, doesn’t suit every personality, especially active speculators.

To impose discipline, she has redirected some profits into dividend-paying oil stocks held in a separate account. “You get paid to wait,” she said, calling oil historically cheap by multiple measures.

Beyond precious metals, Lara highlighted emerging areas of interest among veteran investors.

Copper is getting increasing attention, and will likely receive more if prices stay stable. Nickel remains overlooked, while oil continues to offer a combination of value and income that contrasts sharply with the volatility of junior miners.

Ultimately, Lara framed successful investing as a psychological exercise as much as an analytical one.

“Doing this well is a result of greed and fear,” she said. “In a bear market, you need to be greedy. In a bull market, you need to be somewhat fearful.”

Her closing message for newcomers and longtime investors: participate, but don’t lose perspective. Bull markets reward patience and punish excess.

“We’re all salespeople, including me,” Lara reminded the audience. “So don’t believe everything you hear.”