CAD Digital, a subsidiary of Tetra Digital Group, has successfully completed a series of test transactions for CADD, its fiat-backed token, within its testnet environment. This development marks a significant step toward CADD’s anticipated launch in Q1 2026, showcasing progress in establishing a secure, compliant, and transparent digital currency for Canadians that can be used for payments and transactions.
CADD is designed to be Canada’s first fully regulated stablecoin issued by a financial institution. It will be backed 1:1 by Canadian dollars held domestically under Canadian law and built on institutional-grade custody, settlement, and compliance infrastructure through Tetra, parent company of Tetra Unity and Tetra Trust, Canada’s first fully regulated digital asset custodian. Didier Lavallée, Founder and CEO of Tetra Digital Group, stated, “These tests highlight the potential for CADD to streamline payments and settlement while preserving the safeguards that underpin Canada’s financial system. It’s a meaningful step towards bringing digital efficiency to an environment built on trust and Canadian sovereignty.”
During the testing phase, Tetra successfully facilitated CADD transfers between initial partners within a controlled, proof-of-concept environment. This represented a milestone as the first instance of a Canadian-dollar stablecoin moving between two financial institutions, including a major bank. Specifically, Wealthsimple and National Bank successfully transferred CADD to each other. The tests also involved transaction flows between CAD Digital and other entities, including Purpose, ATB Financial, and National Bank, demonstrating CADD’s operational capability within Canada’s existing banking and fintech ecosystem.
Tetra is expanding its CADD design partner program with new participants to help build and evaluate various use cases for the stablecoin. The new design partners include Aquanow, Capco, Cybrid, Float Financial, KOHO, Sling Money, Tempo, and WealthONE.
Adrian Seto, Head of Trading at Aquanow, commented on the initiative, stating, “As a design partner, we’re focused on how a regulated CAD stablecoin like CADD could strengthen liquidity operations across the Canadian market. The ability to move value with certainty, reduce intraday funding gaps, and simplify reconciliation has clear potential to enhance institutional workflows.” Avinash Chidambaram, Co-Founder & CEO of Cybrid, added, “CADD represents the next wave of stablecoin innovation, giving businesses a new and important option for moving value fast and efficiently.” Rob Khazzam, CEO of Float, remarked, “A CAD-backed stablecoin is an important step toward that future, enabling real time, programmable movement of Canadian dollars and modernizing how businesses move funds.”
Liam Horne, an experienced technologist specializing in payments-first infrastructure for blockchains and an advisor to the project, highlighted the broader implications. “Stablecoins are no longer limited to cryptocurrency use cases. They are quickly becoming critical infrastructure for payments, treasury management, and financial applications globally,” Horne noted. “Tetra is leading the way in integrating fintechs that rely on the Canadian dollar onto stablecoin rails, meaningfully improving capital efficiency, lowering money movement costs, and helping onboard their customers into the global stablecoin ecosystem.”
This development follows Tetra’s recent $10 million capital raise, aimed at expanding its infrastructure powered by Unity. Unity, supported by investors such as Urbana Corporation, Canadian Securities Exchange, Wealthsimple, Purpose Unlimited, Shakepay, ATB Financial, National Bank of Canada, Coinbase Ventures, Horizon Kinetics, and Shopify, is designed to ensure governance and orchestration across the digital asset ecosystem. Daniel Ordibehesht, Head of Strategy, Corporate Development, & Ventures of ATB Financial, stated, “The successful first deployment and testing of CADD’s smart contract confirms that a regulated, fiat-backed stablecoin can integrate with the existing financial ecosystem. ATB Financial is proud to be a foundational partner in this exciting initiative. This collaboration is crucial for building the transparent infrastructure that will support the future of digital payments and transactions in Canada.”
Through its growing network of partners, Tetra is working to establish the groundwork for regulated stablecoins to bridge traditional and digital finance, contributing to the development of a faster, safer, and more self-reliant digital financial infrastructure within Canada and internationally.
