Tetra Trust Company, a Canadian fintech firm, has launched CADD, a Canadian dollar-pegged stablecoin, following approval from the Alberta Treasury Board and Finance. This stablecoin is the first of its kind to be issued by a regulated Canadian financial institution, with reserves held in trust under Canadian law for redemption purposes. Currently available on major blockchains such as Base, Ethereum, and Tempo, with plans for Solana support, CADD aims to revolutionize institutional transactions. Tetra Trust secured $10 million in funding from prominent backers, including Shopify, Wealthsimple, and the National Bank of Canada, for the development of this project.
In a significant test, Tetra successfully conducted testnet transactions between Wealthsimple and National Bank, marking the first instance of a Canadian stablecoin being transferred between two financial institutions. By positioning CADD for institutional use, Tetra Trust targets applications such as 24/7 cross-border settlements, real-time corporate treasury transfers, and direct fintech-to-fintech transactions, thereby eliminating the delays associated with traditional correspondent banking. The launch of CADD addresses a significant gap in the Canadian market, where a regulated, domestic stablecoin was lacking. With Canada processing approximately $424 billion daily through outdated batch infrastructure, the need for a modern, efficient solution is evident.
The global stablecoin market has experienced exponential growth, reaching a transaction volume of $27 trillion in 2025 and a market capitalization of $320 billion. In Canada, the competitive landscape for stablecoins is relatively small, with few domestic players, including Stablecorp and Loon, which are also developing their own stablecoin offerings.