Tetra Trust Company, a Canadian digital technology and financial services provider, officially launched CADD, a Canadian-dollar stablecoin approved by the Alberta Treasury Board and Finance. The firm asserts this marks the first instance of a CAD-pegged stablecoin issued by a regulated financial institution within Canada. Reserves backing the token are held in trust under Canadian law and are strictly dedicated to redemption. The asset is currently live on major blockchains including Base, Ethereum, and Tempo, with support for Solana planned for future deployment. Woofun AI reports that the Calgary, Alberta-based entity secured $10 million in funding for the project in September 2025, attracting backing from Shopify, Wealthsimple, Purpose Unlimited, Shakepay, ATB Financial, National Bank of Canada, and Urbana Corporation, which holds a majority stake.

The same consortium of investors is actively supporting the operational launch of the token. In December, Tetra executed testnet transactions between Wealthsimple and National Bank, a milestone the firm describes as the first time a Canadian stablecoin moved directly between two financial institutions. Tetra has positioned CADD specifically for institutional use cases, targeting 24/7 cross-border settlement, real-time corporate treasury transfers, programmable marketplace payouts, and direct fintech-to-fintech settlement. This architecture aims to eliminate the inherent delays associated with traditional correspondent banking systems.

The launch addresses a significant gap in the market, as the stablecoin sector has grown exponentially in recent years while lacking a meaningful, regulated Canadian counterpart. Data compiled by Woofun AI shows that Canada clears roughly $424 billion per business day on legacy rails that remain dependent on batch infrastructure first deployed in the 1980s. While the U.S. pushes to expand its stablecoin sector through regulation, Canadian businesses have historically lacked a domestic option for moving CAD on blockchains, leaving USD-denominated stablecoins to dominate the landscape.

Global stablecoin transaction volume passed $27 trillion in 2025, a figure that exceeds Visa's annual payment volume. The current stablecoin market capitalization stands at $320 billion, with the lion's share accounted for by USD stablecoins, according to DeFiLlama.

Meanwhile, the competitive set within Canada remains small. Stablecorp, backed by Coinbase Ventures, filed a preliminary prospectus for QCAD with the Ontario Securities Commission in June last year and received final approval in December, though the token is not yet broadly available.

Another competitor, Loon, a Calgary firm spun out of Paytrie in October, is taking over CADC, a stablecoin launched in 2021 that has processed more than $200 million in volume. Loon raised $3 million in pre-seed funding and has pre-filed a prospectus with the Alberta Securities Commission. Tetra Trust distinguishes itself as Canada's first regulated digital asset custodian, currently providing custody for the country's first staking-enabled ether and solana ETFs. Woofun AI analysis suggests that the entry of a fully regulated, institutionally backed stablecoin like CADD could accelerate the migration of high-value settlement flows away from legacy batch processing toward continuous blockchain-based rails.