Tetra Digital Group’s CADD, Canada’s first regulated Canadian dollar stablecoin issued by a financial institution, can now be custodied by Anchorage Digital for institutional clients.
Summary
- Anchorage Digital will provide regulated custody for CADD to institutional investors
- CADD is backed 1:1 by Canadian dollars held at a licensed Canadian trust company
- The stablecoin is approved by Alberta regulators and designed for on chain CAD settlement
As of May 22, institutions can now hold CADD through Anchorage Digital, a federally chartered crypto bank and qualified custodian that offers regulated digital asset infrastructure to banks, fintechs and asset managers.
How does CADD’s Anchorage custody change institutional access?
In its post, Tetra Digital Group said “institutions can now custody CADD with Anchorage Digital,” describing Anchorage as “a federally chartered crypto bank and qualified custodian providing regulated digital asset custody infrastructure for institutional clients.”
Anchorage Digital Bank, which operates under a national trust charter in the United States, pitches itself as “the first federally chartered crypto bank” and emphasizes services like custody, settlement and staking for institutional counterparties.
For CADD, this gives asset managers, corporates and treasury desks a way to hold the Canadian dollar stablecoin within existing institutional workflows instead of relying on retail oriented exchanges or self custody.
By design, each CADD token is backed 1:1 by Canadian dollars held in trust at Tetra Trust Company, a licensed Canadian trust company that obtained regulatory approval from Alberta Treasury Board and Finance to issue the payment stablecoin via its agent CAD Digital Inc.
According to a Business Wire launch release, “CADD is Canada’s only stablecoin issued through a Canadian financial institution, bringing CAD settlement on chain under full regulatory oversight,” with reserves held in cash and cash equivalents at Canadian financial institutions.
That structure aligns with Ottawa’s emerging stablecoin framework, which is moving toward mandatory 1:1 high quality liquid asset reserves, at par redemption and the use of qualified custodians for fiat backed tokens.
Why CADD matters for Canadian stablecoin regulation and crypto rails
Tetra Digital Group has framed CADD as the first payment stablecoin in Canada that is both backed 1:1 by Canadian dollars and issued by a regulated financial institution, differentiating it from earlier CAD tokens that operated outside provincial prudential regimes.
The company said regulatory approval from Alberta Treasury Board and Finance “marks a national first for digital asset infrastructure in Canada” by allowing Canadian dollars to move on blockchain rails “under a financial services regulatory framework.”
According to BNN Bloomberg, CADD is positioned as “the first regulated stablecoin issued by a financial institution” in the country, with one CADD designed to always equal one Canadian dollar, targeting use cases like domestic payments, treasury and cross border transfers.
Tetra Digital Group has already launched CADD on Ethereum, Base and Tempo, with plans to expand to Solana, giving developers and institutions multiple layer one and layer two environments for Canadian dollar settlement.
This comes as Canada finalizes a federal stablecoin regime that will require fiat backed issuers to register with the Bank of Canada, maintain 1:1 reserves and separate customer assets from their own balance sheets, while banning yield on stablecoin holdings.
For Anchorage Digital, adding CADD expands a custody lineup that has seen rising institutional demand in recent years, with the firm previously reporting an 80 percent quarterly increase in assets under custody as investors sought safer venues after a series of crypto insolvencies.
In a LinkedIn update, Tetra Digital Group stressed that CADD is “structured as a payment stablecoin” and “Canada’s first regulated stablecoin to be structured as a payment instrument issued by a financial institution,” underscoring its ambition to serve as compliant digital cash for the Canadian financial system.
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