For years, Canadian businesses moving money across borders or between institutions have had to choose between slow legacy banking systems or USD-denominated stablecoins. Neither option was ideal. But that’s changing. A new Canadian-dollar stablecoin just launched with backing from some of the country’s biggest financial players, and it’s built specifically for the speed and transparency blockchain offers.
This isn’t just another crypto token. It’s a regulated financial product with actual reserves held in trust under Canadian law. Think of it as digital Canadian dollars that move at blockchain speed, not banking hours.
Meet CADD: Canada’s First Regulated CAD Stablecoin
Tetra Trust Company, based in Calgary, launched CADD in early 2025 with approval from Alberta Treasury Board and Finance. The company claims it’s the first CAD-pegged stablecoin issued by a regulated financial institution in Canada. For more context on the broader crypto landscape, check out our latest Crypto News coverage.
What sets CADD apart is the regulatory foundation. Reserves backing the token sit in trust accounts and are dedicated solely to redemption. You’re not trusting a startup in someone’s garage. You’re trusting a company licensed to hold financial assets under Canadian law.
The token lives on major blockchains already. Base, Ethereum, and Tempo support it today. Solana is coming soon. That means you can move Canadian dollars on whichever blockchain ecosystem you’re already using.
The Money Behind the Launch
Tetra raised $10 million in September 2025 to build this. But the backers matter more than the amount. Shopify, Wealthsimple, Purpose Unlimited, Shakepay, ATB Financial, and National Bank of Canada all invested. Urbana Corporation holds the majority stake.
These aren’t anonymous venture funds. These are real Canadian financial institutions and fintechs betting their reputation on this product. That’s a signal worth noting.
In December, Tetra proved the concept works. They ran a live transfer between Wealthsimple and National Bank using CADD. It was the first time a Canadian stablecoin moved between two major financial institutions. Small moment. Big deal.
Why Canada Needed This
Canada processes about $424 billion per business day. But most of it moves through systems built in the 1980s that still run on batch architecture. Batch means waiting. It means overnight settlement. It means money stuck in transit.
The U.S. has been pushing hard on stablecoin regulation. Europe is moving that direction too. Canada was quiet. Businesses operating here had to use USD stablecoins for blockchain-based settlement because no domestic alternative existed. That’s a competitive disadvantage.
Global stablecoin volume hit $27 trillion in 2025. That’s bigger than Visa’s annual transaction volume. The market cap sits at $320 billion. Most of that is in USD stablecoins. CADD targets the gap left by the absence of a regulated Canadian option.
What CADD Solves: Real Use Cases
Tetra built CADD for specific institutional problems. The first is cross-border settlement. Currently, sending money across borders takes days because correspondent banks move money through multiple intermediaries. Each one takes a cut and adds delay. CADD settles in minutes, 24/7.
Corporate treasury teams can move funds between accounts in real time. No more coordinating with banking hours. No more waiting for settlement windows.
Marketplaces that need to pay creators or sellers instantly can program payouts directly into CADD transactions. The money arrives without the payment processor sitting in the middle.
Fintech platforms can settle with each other without routing through traditional correspondent banking. That cuts costs and friction.
The Competition: Still Small
CADD isn’t alone. But the field is thin. Stablecorp, backed by Coinbase Ventures, filed for QCAD with the Ontario Securities Commission in June 2024 and got final approval in December. But QCAD isn’t broadly available yet.
Loon, a Calgary firm spun out of Paytrie, took over CADC. That token launched in 2021 and has moved over $200 million. Loon raised $3 million pre-seed and pre-filed with Alberta’s Securities Commission.
So three major players exist now. But two are still in limited rollout. CADD has the infrastructure, the backers, and the regulatory approval to move fastest.
Who Is Tetra Trust?
Tetra isn’t a startup with a whitepaper. They were Canada’s first regulated digital asset custodian. They already provide custody for the country’s first staking-enabled ETFs for Ethereum and Solana. They’ve been licensed and audited. They understand what regulators want.
That track record matters. It’s the difference between a promise and a proven operator.
Why This Matters Now
The stablecoin sector exploded over the last few years. But regulation lagged. Banks got nervous. Adoption plateaued in some regions because nobody could agree on the rules.
Canada just proved regulation doesn’t mean dead weight. Tetra launched a fully functional product that actually works within Canadian law. That opens the door for other institutional players to build on blockchain rails here.
Cross-border payments, real-time settlement, and programmable money are no longer sci-fi concepts. They’re available now. And they work in Canadian dollars.
For a broader take on how financial markets are shifting, read our piece on how geopolitical tensions are shaking markets and the role traditional currency plays in those dynamics.
FAQs
What exactly is CADD?
CADD is a stablecoin, which means it’s a digital token designed to hold a stable value. One CADD equals one Canadian dollar. It lives on blockchain networks so it can move instantly instead of taking days through traditional banking.
Is CADD safe? What backs it?
CADD is backed by actual Canadian dollars held in trust accounts under Canadian law. Tetra Trust is regulated and licensed. The reserves can only be used to redeem CADD tokens, so users can convert them back to real dollars on demand.
Which blockchains support CADD today?
CADD currently works on Base, Ethereum, and Tempo. Solana support is planned. You can use whichever blockchain makes sense for your application.
Who can use CADD?
CADD is designed primarily for institutions: banks, fintechs, payment platforms, and treasury teams. Regular consumers might eventually access it through apps built by these institutions, but it’s not a retail product yet.
How is CADD different from USD stablecoins?
USD stablecoins are denominated in U.S. dollars and most are issued by companies outside Canada. CADD is Canadian dollars issued by a regulated Canadian company with reserves held under Canadian law. That makes it more useful for Canadian businesses and reduces currency conversion costs.
