Stable condition

Good morning. With a route spanning Toronto to Quebec City, and trains travelling up to 300 kilometres per hour, the Alto high-speed rail project promises to be one of the most transformative infrastructure enterprises in Canadian history… if it can get off the ground. 

In our most recent Peak Premium story, we did a deep dive into how local opposition is threatening to derail the project — speaking directly with protesters and high-speed rail advocates to get a clear picture. You can nab a free trial of Peak Premium to give it a read.

Today’s reading time is 5½ minutes.

Markets: Canada’s main stock index fell yesterday, weighed down by lower gold prices. But the big loser was quantum computing firm Xanadu, which saw its shares plummet 61% — triggering a temporary trading pause — as early shareholders registered shares for sale.

What’s a horse’s favourite type of cryptocurrency? A ‘stable’ coin!

Hahaha! Well, with that out of the way, let’s move on to the story.

What happened: The first Canadian dollar-backed stablecoin issued by a financial institution is officially trading on three blockchains after receiving approval from the Alberta Treasury Board. The token, called CADD, is the creation of Calgary-based company Tetra. 

Catch-up: In case you need a refresher, stablecoins are cryptocurrencies designed to be less volatile by being pegged to another store of value, usually fiat currency. In March, Ottawa gave royal assent to legislation regulating domestic private-sector stablecoin issuers.

Why it matters: Right now, anyone using stablecoins in Canada is almost certainly using ones pegged to the U.S. dollar. As stablecoin use grows, crypto advocates argue that adopting a loonie-pegged coin is vital for continued sovereignty against the dominant USD.  

Yes, but: This could end up being a not-so-groundbreaking development if stablecoin use doesn’t pick up among average consumers. A recent study by the Federal Reserve Bank of Kansas City found that just 0.7% of stablecoins are used for payments, and more than a fifth straight up aren’t used at all.—QH

Ottawa announced $1.5 billion to support businesses hurt by tariffs. Businesses that manufacture and export products containing steel, aluminum or copper will be eligible for low- and zero-interest loans from the Business Development Bank of Canada as part of a $1 billion tariff relief program. The existing Regional Tariff Response Initiative is also getting an extra $500 million to help support impacted businesses. (CTV News)

Alberta separatists said they submitted more than 300,000 signatures on their petition demanding an independence referendum. 177,732 signatures are needed to prompt the province to consider holding a referendum on the issue, something Premier Danielle Smith has said she’ll do if enough signatures are collected. Elections Alberta still has to verify the signatures and legal challenges to the constitutionality of the referendum are working their way through the courts. (Edmonton Journal)

Fighting to control the Strait of Hormuz restarted. The U.S. announced it would use the Navy to escort shipping through the Strait of Hormuz, prompting Iran to launch missile and drone attacks against U.S. warships, commercial vessels and a port in the UAE. Both sides issued contradictory reports of the strait’s status, with Iran denying U.S. claims that some ships had successfully passed through. (Reuters)

📡 What else is on our radar: 

If you’re expecting a tax refund this year (or are on top of things and already received one) – we have one big question: Are you putting that refund to work?

For many, a tax refund is the one meaningful lump sum they’ll see between now and end-of-year bonus season, which means it’s crucial to ensure your refund is hustling – whether it’s to pad your emergency fund during crazy times, or go towards your next vacation.

Many traditional chequing accounts out there offer little-to-no interest, which doesn’t hit the mark – not in this economy. By putting that refund in EQ Bank’s Notice Savings Account, you’ll get:

Don’t let that refund sit idle. Check out EQ Bank's Notice Savings Account and put your refund to work.

What they’re saying: "We have to actively take on the world as it is, not as we wish it to be… but we don't think that we're destined to submit to a more transactional, insular, and brutal world,” Mark Carney told attendees of the European Political Community summit yesterday in Armenia. Later on, he committed another $270 million in aid to Ukraine.

Why it matters: Canada is the first non-European country to attend the summit since it began in 2022, which is indicative of how cozy Carney is with the continent. While Canada actually joining the EU remains far-fetched, aligning with the bloc’s policies — and making commitments to its causes — has become a higher priority as Canada tries to reduce dependence on the U.S.

Canada’s beef producers are having a real cow over an in-the-works trade deal. 

What happened: The Canadian Cattle Association (CCA), an industry group representing the country’s beef producers, is warning that a free trade deal with South America’s Mercosur bloc could flood Canada’s market with beef from Brazil and Argentina, undercutting domestic ranchers. 

Catch up: Beef is big business in Canada, contributing $34 billion to the economy and supporting just shy of 350,000 jobs, making it the third-largest employer in the agricultural sector. 

Why it matters: Free trade deals always sound good in theory (especially when you’re rapidly trying to diversify your export markets), but get messier when it comes to hammering out the details. Domestic industries that stand to lose market share can suffer, and that can create real political and economic difficulties. 

What’s next: The European Union faced similar protests from farmers over its trade deal with Mercosur and settled on a quota system that limited produce imports. Canada may seek a similar carve-out for beef.—TS

🧪 5. Where Canada placed on a new ranking of higher education research, behind the U.K., the Netherlands, the U.S., and Sweden. We’re gunning for the U.S.’s spot though, with multiple universities launching recruitment campaigns to lure top researchers upset with the Trump administration’s lawsuits against universities.

^{*This is sponsored content.}

Chase away the Tuesday blues with today’s mini-crossword, the daily sudoku, Codebreaker, and Who’s Who!