Canada approves CADD stablecoin, the first issued by a regulated financial institution

CryptoWorld News: Canada has approved the CADD stablecoin as a regulated digital asset, pegged 1:1 to the Canadian dollar. Tetra Trust launched the token in early May 2026 on the Ethereum, Base, and Tempo networks, becoming the first Canadian dollar stablecoin issued by a regulated financial institution. This approval comes from the Alberta regulatory authority, aiming to expand compliant digital payment infrastructure. Policymakers are pushing for clearer crypto regulatory frameworks to address the rising institutional demand for stable digital settlement tools. Shopify and the Bank of Canada supported the project’s launch, marking early institutional adoption. Multi-chain deployment allows CADD to integrate into decentralized finance and payment systems, with Ethereum supporting decentralized applications and Base enhancing transaction efficiency. Regulators require full reserve backing of the Canadian dollar to prevent liquidity mismatches and ensure redemption stability. The launch also introduces a blockchain-based Canadian dollar settlement channel, enabling institutions to process cross-border transactions more quickly.