Tetra Trust Company has launched CADD, a Canadian-dollar stablecoin approved by Alberta Treasury Board and Finance, with backing from Shopify Inc., National Bank of Canada, Wealthsimple, ATB Financial and Urbana Corporation in a $10 million September 2025 funding round. The token represents the first CAD-pegged stablecoin issued by a regulated financial institution in Canada, enabling 24/7 cross-border settlement and real-time corporate treasury transfers without correspondent banking delays.

Market Context

Global stablecoin transaction volume exceeded $27 trillion in 2025, surpassing Visa's annual payment volume, while Canada's domestic clearing infrastructure still processes roughly $424 billion per business day through batch systems first deployed in the 1980s. The launch fills a gap for Canadian businesses that have relied on USD-denominated stablecoins for blockchain-based CAD transactions.

Analysis

The institutional backing from Shopify and National Bank signals confidence in regulated digital asset infrastructure for corporate treasury operations. Tetra Trust, Canada's first regulated digital asset custodian, positions CADD for programmable marketplace payouts and direct fintech-to-fintech settlement. December testnet transactions between Wealthsimple and National Bank demonstrated interoperability, marking the first Canadian stablecoin transfer between two financial institutions.

Urbana Corporation holds a majority stake in Tetra, while competitors are emerging. Stablecorp, backed by Coinbase Ventures, received Ontario Securities Commission approval for QCAD in December but has not yet launched broadly. Loon, spun out of Paytrie in October, acquired CADC—a stablecoin that processed over $200 million in volume since 2021.

Key Numbers

- Global stablecoin transaction volume: $27 trillion (2025), exceeding Visa's annual payment volume

- Current stablecoin market cap: $320 billion (per DeFiLlama)

- Canada daily clearing volume on legacy rails: $424 billion per business day

- Tetra funding raised: $10 million (September 2025)

- CADC historical processed volume: over $200 million since 2021

What to Watch

CADD is live on Base, Ethereum and Tempo blockchains with Solana support planned. Monitor adoption velocity among Canadian fintechs seeking alternatives to correspondent banking delays. Regulatory developments from Alberta Treasury Board and Finance will be critical for institutional trust. USD stablecoin dominance in the $320 billion market suggests significant room for CADD penetration in domestic corporate treasury applications.