Key Highlights
- CADD becomes Canada’s first regulated CAD-backed stablecoin.
- The stablecoin is approved by the Alberta Treasury Board and Finance via CAD Digital.
- It is issued by Tetra Trust with 1:1 CAD reserves held in Canada.
Tetra Trust Company, a fully regulated Canadian custodian for digital assets, today announced that CADD, a stablecoin backed 1:1 by Canadian dollars, has received regulatory approval from the Alberta Treasury Board and Finance via its agent, CAD Digital Inc.
According to the official announcement, the approval marks the first regulated CAD stablecoin in Canada, permitting Canadian dollars to move on blockchain rails within a formal financial services regulatory framework.
The company also stated that CADD is issued by a licensed trust company, with reserves held in Canada and built-in compliance measures. It is currently live on Base, Ethereum, and Tempo, with a launch on Solana scheduled in the coming weeks.
Didier Lavallée, Founder and CEO of Tetra Digital Group, commented on the approval, stating, “This milestone reflects the strong collaboration with Alberta’s government, industry partners, and regulators to bring a compliant and scalable Canadian-dollar stablecoin to market. CADD is issued by a regulated financial institution, with reserves held in Canada and compliance built in from day one.”
Details about the stablecoin
CADD is positioned as a regulated stablecoin issued by an institutionally licensed trust company. Funds used for minting are held in custody strictly for redemption purposes, aligning with institutional asset protection standards.
Tetra Trust, Canada’s first licensed digital asset custodian, previously supported staking-enabled Ethereum and Solana ETFs. The firm is now expanding its offerings with CADD.
The stablecoin is backed by a group of Canadian banks and tech companies such as Urbana Corporation, Wealthsimple, Purpose Unlimited, Shakepay, ATB Financial, National Bank of Canada, and Shopify.
In December 2025, CADD completed a testnet stage, marking itself out as the first stablecoin to operate in Canada capable of transferring money from one financial institution to another, namely, the National Bank of Canada and Wealthsimple.
Rules for stablecoins
Last year, the government of Canada came up with its first federal regulation on stablecoins through the passage of the 2025 federal budget. Stablecoins were required to have full reserve backing, redemption policies, and enhanced protections for both personal and financial information.
The Bank of Canada allocated $10 million over two years to oversee implementation, with ongoing costs expected to be recovered from regulated issuers.
Broader context
The move comes as demand for stablecoins has increased, as global stablecoin transactions surpassed $27 trillion in 2025. CADD is created to be used in institutional use cases such as 24-hour cross-border settlement, instant intercorporate treasury transfer, programmable payments, and direct settlement between fintech platforms without the delay of correspondent banking.
With this regulatory approval, CADD will enter the market with institutional backing and an emphasis on regulatory certainty. This innovation stems from Canada’s changing regulations regarding digital assets and the increasing need for efficient on-chain movement of the Canadian dollar.
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