Canada has taken a significant step toward launching its first fully regulated Canadian-dollar stablecoin.
Tetra Digital Group, the parent company of Tetra Trust, says its subsidiary CAD Digital has successfully completed a series of test transactions for its fiat-backed token, CADD, within a controlled testnet environment. The tests mark a key milestone ahead of an expected launch in the first quarter of 2026.
Tetra says the testing represents the first time a Canadian-dollar stablecoin has moved between two financial institutions, including a major bank. During the pilot, Wealthsimple and National Bank of Canada successfully transferred CADD to one another, demonstrating how digital Canadian dollars could move securely across institutions.
Additional transaction flows were tested between CAD Digital and Wealthsimple, Purpose, ATB Financial, and National Bank, offering an early look at how a regulated CAD-backed stablecoin might function within Canada’s existing banking and fintech ecosystem.
CADD is designed to be issued by a financial institution and backed one-to-one by Canadian dollars held domestically under Canadian law. Tetra says the stablecoin is being built on institutional-grade custody, settlement, and compliance infrastructure, with the goal of supporting payments and settlement while preserving Canada’s financial safeguards.
Alongside the technical milestone, Tetra expanded its CADD design partner program, adding fintech and infrastructure firms including Aquanow, Capco, Cybrid, Float Financial, KOHO, Sling Money, Tempo, and WealthONE. The company said these partners will help evaluate real-world use cases, including liquidity management, reconciliation, and institutional payments.
The development follows a recent $10-million financing round for Tetra to expand its digital asset infrastructure. The company says the work is aimed at strengthening Canada’s digital payments infrastructure while maintaining domestic oversight and financial sovereignty.
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