Tetra Digital Group announced the launch of Canada’s first stablecoin backed by the Canadian dollar and issued through a licensed financial institution with the support of a local financial regulator.
Canadian company Tetra Digital Group, which specializes in custody services, digital payments, and infrastructure for crypto-assets, launched CADD, a payment stablecoin backed by the Canadian dollar. The asset is issued through its subsidiary Tetra Trust and received approval from the Alberta Treasury Board and Finance. The stablecoin’s issuer is CAD Digital Inc.
Didier Lavallee, Founder and CEO of Tetra Digital Group, stated that the asset was created within a regulated financial infrastructure and is intended for institutional use, including cross-border settlements, corporate transfers, and programmable payments. According to him, the solution is primarily aimed at banks, payment providers, and FinTech companies that require regulated infrastructure for digital settlements.
The country’s daily clearing volume reaches $424 billion. However, despite strong international demand for the Canadian dollar, Canada still lacks scalable infrastructure for on-chain settlement in its national currency.
The launch of CADD marks the first time in Canada that a stablecoin was issued by a licensed trust company. The reserves backing the token are held in Canada and are used exclusively for redeeming issued coins. In December 2025, the asset was tested by the Bank of Canada (BoC) and FinTech company Wealthsimple. The project is technically supported by a consortium of leading Canadian financial institutions and technology companies, including Urbana Corporation, Purpose Unlimited, Shakepay, ATB Financial, and Shopify. CADD is available on the Base, Ethereum, and Tempo blockchains, with support for Solana expected soon.
In 2024, the Bank of Canada paused development of a retail CBDC, focusing instead on modernizing national payment systems, and in 2026, together with the country’s largest commercial banks, successfully tested the issuance of tokenized bonds.
