What Is CADD and Why Does It Matter?
Tetra Trust has launched CADD, a Canadian dollar-pegged stablecoin approved by Alberta Treasury Board and Finance, marking the first such token issued by a regulated financial institution in Canada.
The company said reserves are held in trust under Canadian law and dedicated to redemption. The token is live on Base, Ethereum, and Tempo, with Solana support planned.
The launch is backed by a consortium that includes Shopify and the National Bank of Canada, alongside Wealthsimple, Purpose Unlimited, Shakepay, ATB Financial, and Urbana Corporation.
The move addresses a gap in Canada’s digital asset ecosystem, where stablecoin adoption has been dominated by US dollar-denominated tokens due to the absence of a regulated domestic alternative.
How Is CADD Positioned for Institutional Use?
Tetra Trust is targeting institutional workflows with CADD, focusing on use cases such as 24/7 cross-border settlement, real-time corporate treasury operations, and direct fintech transfers.
The design aims to replace legacy payment infrastructure that relies on batch processing, which can delay settlement and increase operational friction. By enabling continuous, programmable transfers, the token is intended to integrate with existing financial systems while improving efficiency.
In December, Tetra completed testnet transactions between Wealthsimple and National Bank, which the firm said marked the first movement of a Canadian stablecoin between two financial institutions.
Investor Takeaway
What Does This Mean for Canada’s Payments Infrastructure?
Canada processes roughly $424 billion per business day through legacy payment systems that remain dependent on batch infrastructure introduced decades ago. This setup contrasts with blockchain-based settlement models that operate continuously.
The absence of a domestic stablecoin has meant that Canadian firms often rely on US dollar-denominated tokens for blockchain transactions, introducing currency mismatch and additional complexity.
Global stablecoin transaction volume reached $27 trillion in 2025, surpassing Visa’s annual payment volume. The market capitalization stands near $320 billion, with most activity concentrated in US dollar-backed assets.
Investor Takeaway
How Competitive Is the Canadian Stablecoin Market?
The competitive landscape in Canada remains limited but is developing. Stablecorp, backed by Coinbase Ventures, received approval for its QCAD stablecoin from the Ontario Securities Commission, though the token is not yet widely available.
Another entrant, Loon, has taken over CADC, a stablecoin launched in 2021 that has processed more than $200 million in volume. The firm has raised $3 million and filed a prospectus with the Alberta Securities Commission.
Tetra Trust’s position as Canada’s first regulated digital asset custodian and its role in providing custody for staking-enabled ether and solana ETFs may support early institutional adoption. The backing from established financial and fintech firms adds further distribution potential as the market develops.
