The Tetra Digital Group announced today the launch of CADD, the first Canadian stablecoin issued by a regulated financial institution. The token, structured as a payment vehicle under the provincial trust company framework, has been fully approved under Alberta Treasury Board and Finance regulations and is now available for trade on the Base, Ethereum, and Tempo mainnet.
First Canadian stablecoin structure
In contrast to “offshore” stablecoins that lack regulation, the reserves backing CADD are held in Canada under domestic oversight, providing an institutional platform that the Canadian marketplace has desired for some time. Several Canadian banks and technology companies have backed the effort: National Bank of Canada, ATB Financial, Wealthsimple, Shopify, Urbana Corporation, Purpose Unlimited, and Shakepay.
Practical use cases
The first Canadian stablecoin allows financial institutions, fintech companies, and payment providers around the world to use the Canadian dollar as an onchain settlement currency 24/7. The primary use cases of the CADD stablecoin include:
- Settling cross-border transactions in real time 24/7, thereby eliminating delays caused by banking hours.
- Transferring money from one corporate treasury to another in real time, allowing for instant transfers of CAD between entities.
- Providing programmable payments to marketplaces, enabling automated and conditional settlements.
- Settling transactions between fintech companies without needing to use a third-party service provider, thus reducing intermediary friction.
With the launch of the CADD stablecoin, the Canadian dollar is now a globally accepted digital currency. For businesses tired of waiting for wire transfers and incurring high foreign exchange (FX) costs, CADD is a game-changer. Additionally, the Canadian crypto ecosystem is now on par with the dominant USDC/USDT used in the global stablecoin markets, and just in time: according to Chainalysis, stablecoin volumes could hit USD 719 trillion by 2035.
“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.” – Didier Lavallée, Founder and CEO of Tetra Digital Group