Following approval from Alberta regulators, the new CAD stablecoin has officially entered the Canadian financial system.
Tetra Trust Company has announced CADD, a 1:1 Canadian dollar-backed token offered under a managed financial system. CADD currently runs on Base, Ethereum, and Tempo network systems, with plans looking to expand to Solana.
CAD stablecoin brings regulated payment infrastructure
The CAD stablecoin allows Canadian dollars to be settled on-chain with near-instant finality. This adds a new branch to Canada’s traditional payments system, which processes approximately $424 billion in transactions every day through a standard system created decades ago.
The introduction of a continuous payment network will allow the flow of funds to function without traditional time constraints.
Tetra Digital Group has ensured that all funds transferred to CADD are held in trust and can only be redeemed.
As a result, stablecoins enable regulated engagement by banks, fintech companies, and payment providers who must be stablecoin compliant from the outset.
As highlighted in the blog post, this launch marks a partnership between regulators, industry participants, and government authorities. This approval was granted by the Alberta Finance Board and the Department of Finance, allowing the token to be introduced into the financial services framework. This makes CADD the first Canadian stablecoin issued by a licensed trust company.
Institutional support and market position
The CAD stablecoin is coming to market with the backing of a group of Canadian financial institutions and technology companies. These include National Bank of Canada and Shopify, along with other participants such as Wealthsimple, ATB Financial, and Purpose Unlimited. This support focuses on early institutional engagement with the country’s digital asset infrastructure.
In December 2025, CADD completed a test phase that included a transaction between the National Bank of Canada and Wealthsimple. This marks the first reported transfer of a Canadian stablecoin between two financial institutions. This test validated the token’s ability to support real-world payments within a regulated environment.
This follows Cryptopolitan’s previous reporting that Canada was already moving to accelerate stablecoin regulation ahead of Francois-Philippe Champagne’s November 4th federal budget. At the time, John Ruffolo called for faster action and urged authorities to introduce clear rules for Canadian dollar stablecoins.
CAD stablecoin targets market gap with real-time payments use case
The CAD stablecoin targets use cases that existing Canadian payment systems have struggled to support. These include 24/7 cross-border payments, 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 the high growth of stablecoins globally, domestic offerings in Canada have been limited. Competing projects such as QCAD and CADC are in development or have limited adoption. This has led Canadian businesses to rely on foreign currency stablecoins for blockchain-based payments.
CADD taps into a market currently worth around $320 billion, where USD-backed tokens dominate. By introducing a regulated Canadian dollar option, the CAD stablecoin will serve as a local payment mechanism governed by Canadian law.
