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

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 became Canada’s first regulatory-approved VRCA, and one unit is meant to be worth $1 Canadian.

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. 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 securities regulators treat many VRCAs as investment products, even if they are tied to the value of a currency.

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 BTC 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, QCAD was the first Canadian-dollar-denominated VRCA to receive regulatory approval from the Canadian Securities Administration (CSA). It is developed by Stablecorp Digital Currencies, a process that 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.

Using VRCAs typically involves costs, depending on how they are used. Platforms may charge a trading fee to buy or sell a VRCA. If a user withdraws their VRCA to an external wallet or sends it on-chain, network fees may apply.

Network fees vary by blockchain. Fees can increase during periods of high activity.
 

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. VRCAs are widely used by Canadians to support faster on-chain transfer times.

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.