Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Canada’s First FI Issued CAD Stablecoin Launches
May 4, 2026 | NCFA Fintech Market Activity | Digital Assets Blockchain And Tokenization, Payments And Money Movement
CADD Brings Regulated 24/7 CAD Settlement On Chain
On May 4, 2026, Tetra Trust Company, through its agent CAD Digital Inc., launched CADD, a payment stablecoin backed 1:1 by Canadian dollars. Alberta Treasury Board and Finance approved the model, making CADD Canada’s first CAD backed stablecoin issued by a regulated financial institution.
CADD runs on Base, Ethereum, and Tempo, and Tetra expects Solana support next. The product gives Canadian dollars a regulated on chain settlement rail at a time when most stablecoin activity still runs through U.S. dollar assets. Canada’s payment systems cleared and settled more than $424 billion every business day in 2024, which shows the scale of domestic payment activity that still needs faster, more programmable settlement options.
The reserve structure is the core trust feature. Tetra says all funds used to mint CADD are held in trust and dedicated only to redemption. That gives institutions a clearer reserve, redemption, and asset protection model than offshore or loosely governed tokens. It also keeps the product grounded in Canadian law, Canadian reserves, and regulated trust company oversight.
Didier Lavallée, Founder and CEO, Tetra Digital Group
“This milestone reflects the strong collaboration with Alberta’s government, industry partners and regulators to bring a compliant and scalable Canadian-dollar stablecoin to market. CADD is issued by a regulated financial institution, with reserves held in Canada and compliance built in from day one by a firm with Canada’s longest track record of operating regulated digital asset infrastructure. It enables faster and more efficient movement of Canadian dollars on-chain within a structure institutions recognize.”
See: Stablecoins Split Into Issuance And Service Layers
CADD enters the market with strong Canadian distribution behind it. The consortium includes Tetra Digital Group, Urbana Corporation, Wealthsimple, Purpose Unlimited, Shakepay, ATB Financial, National Bank of Canada, and Shopify. Distribution will decide whether a Canadian dollar stablecoin stays niche or becomes useful for payments, treasury, fintech settlement, and institutional workflows.
The launch follows a December 2025 testnet phase where CADD became the first Canadian stablecoin to move between two financial institutions, National Bank of Canada and Wealthsimple. The key point in Canada’s stablecoin test was that production grade Canadian stablecoin infrastructure needs regulated issuance, custody, compliance, and real distribution partners.
CADD gives Canadian fintechs and institutions a domestic alternative to U.S. dollar stablecoin rails.
It can support 24/7 cross border settlement, corporate treasury transfers, programmable marketplace payouts, and direct settlement between fintech partners without waiting on traditional banking windows. It gives builders a Canadian dollar rail to design around.
Why This Matters For Canada
Most stablecoin growth has favoured U.S. dollar assets. Tetra says global stablecoin transaction volume surpassed $27 trillion in 2025, exceeding Visa’s annual payment volume. Canada has had CAD stablecoin initiatives before, including QCAD and CADC, but CADD brings regulated financial institution issuance, domestic reserves, and major Canadian distribution into one package.
The timing also connects to Canada’s digital finance buildout. Bill C-15 gave Canada a legal framework for stablecoins and consumer driven banking, while payment service providers now operate under the Retail Payment Activities Act. CADD brings that discussion into payment infrastructure.
Competition won't wait. CADC stablecoin consolidation and QCAD banking infrastructure already show demand for domestic digital money. CADD adds a regulated trust company issuer and a stronger partner network, which may help Canadian dollar settlement compete with foreign currency rails.
Talking Point
For banks, PSPs, exchanges, marketplaces, and fintech platforms, the integration question is practical. Can CADD reduce settlement delays, simplify treasury operations, and support programmable money flows while keeping controls strong enough for Canadian regulators and institutional risk teams?
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