As a result of successful testing, CADD was transferred between the National Bank and Wealthsimple.
Calgary-headquartered Tetra Trust is one step closer to launching its Canadian dollar-backed stablecoin.
“[This is] a significant step towards achieving digital efficiency in an environment built on Canadian trust and sovereignty.”
In September, Tetra Trust sought to expand beyond its role as a regulated custodian of cryptocurrencies. formed a new parent company which raised C$10 million to launch a stablecoin called CADD.
Stablecoins are a form of digital currency that is pegged to traditional fiat currency, usually the US dollar. In response to industry requirements and similar legislation in the US, federal government recently revealed draft regulatory framework for stablecoin issuers in Canada.
Tetra said this week that CADD has been successfully tested in a controlled proof-of-concept environment, paving the way for a launch in the first quarter of 2026. Tetra said the tests made CADD the first Canadian dollar stablecoin to move between two financial institutions, successfully moving between National Bank and Wealthsimple (Hannah Zaidi, VP of Payments Strategy and Chief Compliance Officer at Wealthsimple, sits on BetaKit's board of directors).
The tests highlight CADD's potential to streamline payments and settlements while “preserving the guarantees at the core of Canada's financial system,” Tetra Digital Group founder and CEO Didier Lavallee said in a statement.
“This is a significant step towards delivering digital efficiency in an environment built on Canadian trust and sovereignty,” Lavallee added.
Tetra said the CADD will be backed by Canadian dollars held domestically under Canadian law and built on the institutional infrastructure of storage, settlement and compliance through Tetra.
While Tetra says CADD aims to be the first fully regulated Canadian stablecoin issued by a financial institution, competitors are in development. Stablecorp, based in Toronto recently announced QCAD is the first Canadian dollar-pegged stablecoin to receive regulatory approval. Stablecorp CEO Kesem Frank told BetaKit in November that QCAD Digital Trust aligns with the existing Canadian Securities Administrators framework, which was published in 2023, while he awaits Canada's new stablecoin strategy.
London-based VersaBank, a Schedule I chartered bank, using a different approach For the same purpose, digital deposit receipts are issued, called real bank deposit tokens. VersaBank founder and CEO David Taylor said in a September interview with BetaKit that his product is an improved and more secure version of a “so-called stable coin.”
CONNECTED: Parent company Tetra Trust enlists the help of banks and FinTechs to launch a Canadian stablecoin
Tetra said it is expanding its CADD design partnership program with new participants beyond its scope. initial investors to help create and evaluate new use cases for CADD. New partners include Canadian fintech companies such as Aquanow, Capco, Cybrid, Float Financial, KOHO, Sling Money, Tempo and WealthONE.
“As a design partner, we are focused on how a regulated CAD stablecoin like CADD can strengthen liquidity operations in the Canadian market,” Aquanow head of trading Adrian Seto said in a statement. “The ability to confidently move value, reduce intraday funding gaps and simplify reconciliations has clear potential to improve institutional workflows.”
Disclosure: Hannah Zaidi, Wealthsimple's Vice President of Payments Strategy and Chief Compliance Officer, serves as BetaKit Board of Directors.
Image courtesy of Tetra Trust.
