TechX and CatalyX announce the launch of CADX, a Canadian dollar based stablecoin, on Bittrex

Karthik Subramanian

TechX, a Canadian fintech company that focuses on blockchain, crypto, AI, and other emerging technologies, has announced that its portfolio company CatalyX has developed the stablecoin CADX, which has been listed in the Bittrex crypto exchange.

toronto-canada

It is a rush for stablecoins in recent times as one of the prime uses of crypto, as an alternative to fiat, is beginning to take hold of the crypto market. The crypto domain has long been criticised for its volatility and associated risk which has driven away many major investors. Bitcoin, Ethereum, and other such cryptos cannot be used as reliable methods of payment due to their volatility as their price sometimes changes by over 10% in a day. So, the best alternative to fiat that the crypto backers can bring in is the stablecoins.

CatalyX is one of the biggest crypto exchanges in Canada and it had partnered with the fintech company Stably to launch the CADX stablecoin in 2020. This coin would be pegged to the Canadian dollar at a 1:1 ratio and would be fully backed by and redeemable to CAD and it is held in an audited trust account by the official regulated trustee, Prime Trust.

“We are ecstatic to be the first Canadian dollar-backed stablecoin to be listed on Bittrex, one of the world’s top crypto exchanges,” said Catalyx CEO Jae Park. “The listing on Bittrex provides the CADX coin international market exposure and offers crypto traders a flexible and secure alternative to existing stablecoins.”

There are many stablecoins pegged to the USD and that includes USDT and USDC which have over a billion tokens in circulation while Binance and GMO recently announced the creation of the GYEN stablecoin that is pegged to the Japanese Yen. Stablecoins are mainly used for cross-border payments at this point in time due to their ease of use and speed as well. It is expected that these stablecoins would attain more traction in the future and would also be used as modes of payment just like fiat currencies.

The challenge for stablecoins would arise due to the fact that there are many stablecoins to choose from and the users would be confused on which one to use. Each of these coins would be vying for attention and traction in the market and that is likely to be a challenge as far as their adoption for mainstream payments is concerned. The other challenge is to know whether these coins are really backed and audited to make them fully redeemable at any point in time and it is this trust that the users would expect in a stablecoin if they have to choose a specific one for their mainstream use.

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