What are Value-Referenced Crypto Assets (VRCAs) and why do Canadians use them?

• A VRCA is a crypto asset designed to track a reference value, such as $1 USD or gold.
• VRCAs are used for practical reasons such as transfers, trading, and holding a stable reference during volatility.
• VRCAs are still crypto assets and not the same as bank deposits.
• In Canada, VRCA availability and oversight depends on regulatory conditions, and crypto assets are not covered by CIPF or deposit insurance.

Key takeaways: A VRCA is a crypto asset designed to reference a stable value, such as $1 USD or the market price of a commodity like gold. VRCAs can be useful for trading, transferring, or holding (“parking”) value during volatile markets. QCAD is a Canadian-dollar-referenced VRCA designed to track $1 CAD, and its distribution has been addressed through a Canadian securities regulatory process.

• Peg: The intended reference value a VRCA is designed to track.
• Reserves: Assets held to support the peg, such as cash or cash equivalents.
• Redemption: The process of exchanging a VRCA for the reference asset under an issuer’s rules.
• De-pegging: When a VRCA trades above or below its intended reference value.

In Canada, “VRCA” is the term securities regulators use for what is known as “stablecoins” across the broader industry. When people refer to VRCAs, they usually mean one of two related things:

• The reference value: the asset the token is designed to track (for example, one ounce of gold, $1 USD, $1 CAD).
• The token and its structure: the crypto token itself (the VRCA) and the mechanism used to maintain the reference value.

A VRCA (Value‑Referenced Crypto Asset) is the term used by Canadian securities regulators to describe a crypto‑asset whose value is referenced to a fiat currency, such as CAD or USD or an asset like gold. It is a regulatory classification applied to certain stablecoins that meet the CSA’s conditions for distribution and oversight in Canada.

Yes. Canadians can buy, sell, and hold VRCAs. However, VRCAs, even those related to the Canadian dollar, are not legal tender in Canada and are not issued by the Government of Canada.

Canadian regulators have issued specific terms and conditions for crypto trading platforms that facilitate trading in certain VRCAs. These conditions can cover areas like issuer disclosures, reserve and redemption expectations, and additional platform obligations intended to reduce user and market risks when VRCAs are offered to Canadians.

Buying VRCAs on Ndax is straightforward: create an account and complete identity verification, fund your account in CAD using supported deposit methods (including Interac e-Transfer), place a buy order, then decide whether to hold the VRCA in an Ndax account or withdraw to an external wallet. 

VRCAs are designed to offer greater price stability than many other crypto assets, but they are not risk-free. A VRCA can deviate from the asset it is built to mirror, known as “de-pegging.” For example, a US dollar VRCA could trade at $0.995, which may not seem like a big difference. This is not the equivalent of one dollar.

Crypto assets are not covered by the Canadian Investor Protection Fund (CIPF) or deposit insurance. Ndax operates within Canadian regulatory requirements. Crypto assets are not covered by CIPF or deposit insurance.

QCAD is a Canadian-dollar-referenced VRCA designed to track $1 CAD. In November 2025, the Ontario Securities Commission published a decision relating to QCAD Digital Trust. It is developed by Stablecorp Digital Currencies and the regulatory process took six years to finalize.

A VRCA wallet is a tool that lets users access and control their VRCAs on a blockchain. The wallet itself does not store assets inside it. Ownership of crypto assets is recorded on the blockchain, and the wallet is merely the tool a user uses to send, receive, and manage their VRCA.

Ndax lists a flat trading fee of 0.20% on all buy and sell orders on its published fee schedule as of January 2026, including VRCAs. A flat trading fee means the same percentage rate applies to each trade, regardless of size or order type.

If a user withdraws their VRCA to an external wallet, a network fee (paid to the blockchain network for processing the transfer) may apply. 
 

VRCAs combine a blockchain-based token with a structure designed to keep the token’s value close to its reference value. There are several components required to understand how VRCAs work.

Issuance and redemption
Many VRCAs are issued when an authorized party deposits the reference asset with the issuer, and then tokens are minted. Tokens can be redeemed when the issuer burns tokens and returns the reference asset, depending on the issuer’s redemption rules.

Reserves and peg maintenance
Some VRCAs aim to maintain their peg through reserves. The most common forms are holding cash or cash equivalents, such as treasury bills. There are also policies and controls in place meant to support the 1:1 value tracking. Other models exist, such as algorithmic systems that mint or burn tokens to maintain a peg.

Blockchains and settlement
VRCAs, like all other crypto assets, live on blockchain networks. Transactions settle according to standard blockchain rules, timing, and fees.

VRCA use cases
VRCAs offer users the speed and flexibility of crypto systems but with a more stable reference price. Common use cases include transfers and payments, exposure to commodities like gold, and foreign exchange exposure.
 

VRCAs are generally used for practical reasons, rather than investments or speculation. A VRCA is designed to help users hold a value reference (like CAD or USD) inside crypto markets. Some Canadians use VRCAs for transfers and settlement, or as a stable reference value when moving between crypto assets.

Canadian regulators caution that VRCAs are not the same as fiat currency and that all crypto assets, even VRCAs, carry risk.
 

Most VRCAs are not fully anonymous. Transactions are recorded on public blockchains for anyone to see. Identities can sometimes be linked to an individual through real-world activity. As always, users should treat their crypto holdings and transaction details as potentially traceable over time.

Are VRCAs legal in Canada?
Yes. Canadians can buy, sell, and hold VRCAs, but platforms may be restricted in which VRCAs they offer under Canadian regulatory requirements.

Are VRCAs the same as Canadian dollars?
No. A CAD-referenced VRCA is designed to track the value of $1 CAD, and this peg could, in theory, break. A VRCA is also a crypto asset and not legal tender.

What does “de-pegging” mean?
De-pegging means a VRCA trades above or below its intended reference value. For example, a VRCA pegged to the Canadian dollar could, in theory, trade at $0.995 or $1.005. This can happen due to market stress, liquidity issues, or investor concerns.

Are VRCAs insured like bank deposits?
No. The CSA has stated that users holding a VRCA do not receive the same protections offered to regulated deposits. Crypto assets are not covered by CIPF or deposit insurance.

Does regulatory oversight mean a VRCA is risk-free?
No. The CSA notes that even if a VRCA issuer has provided a product to the market, it does not mean the CSA approves or endorses the VRCA or its safety.