A new CAD stablecoin has officially entered the Canadian financial system following regulatory approval in Alberta.
Tetra Trust Company unveiled CADD, a one-to-one Canadian dollar-backed token delivered under a governed financial system. CADD is now live on Base, Ethereum, and Tempo network systems, with plans aiming to extend to Solana.
CAD stablecoin brings regulated settlement infrastructure
The CAD stablecoin allows Canadian dollars to settle on-chain with near-instant finality. This adds to a new branch to Canada’s legacy payment systems, which processes about $424B in daily transactions through a standard system created decades ago.
The introduction of ongoing payment networks allows financial flows to function without traditional time limitations.
Tetra Digital Group assured that all funds minted to CADD are held in trust and can be redeemed only.
Consequently, the stablecoin enables regulated involvement by banks, fintech companies, and payment providers that must comply with the stablecoin from its inception.
The launch, as highlighted in the blog post, marks a partnership between regulators, industry participants, and government authorities. The approval was granted by Alberta Treasury Board and Finance, enabling the token to be introduced into a financial services framework. This makes the CADD the first stablecoin in Canada issued by a licensed trust company.
Institutional backing and market position
The CAD stablecoin enters the market with backing from a group of Canadian financial institutions and technology firms. These include National Bank of Canada and Shopify, alongside other participants such as Wealthsimple, ATB Financial, and Purpose Unlimited. This support focuses on early institutional engagement with domestic digital asset infrastructure.
In December 2025, CADD completed a test phase that included a transaction between the National Bank of Canada and Wealthsimple. This marked the first reported transfer of a Canadian stablecoin between two financial institutions. The test verified the token’s ability to support real-world settlement within a regulated environment.
This follows a previous report by Cryptopolitan that Canada had already moved to accelerate stablecoin regulations ahead of federal budget documents presented by François-Philippe Champagne on November 4. At the time, John Ruffolo had called for faster action, urging authorities to introduce clear rules for Canadian dollar stablecoins.
CAD stablecoin targets market gap with real-time payment use cases
The CAD stablecoin targets use cases that existing Canadian payment systems have struggled to support. These include 24/7 cross-border settlement, real-time treasury operations, and programmable payments for digital platforms. It also enables direct transactions between financial institutions without relying on correspondent banking networks.
Despite high global growth in stablecoins, Canada has had limited domestic offerings. Competing projects such as QCAD and CADC remain either in development or have seen limited adoption. This has left Canadian businesses dependent on foreign-denominated stablecoins for blockchain-based payments.
CADD enters a market currently valued at approximately $320 billion, where U.S. dollar-backed tokens dominate. By introducing a regulated Canadian-dollar option, the CAD stablecoin serves as a localized settlement mechanism governed under Canadian law.
Leave a Reply
You must be logged in to post a comment.