Base welcomes CADD, Canada’s first regulated dollar stablecoin

CADD, Canada's inaugural regulated Canadian dollar stablecoin, has been launched on Coinbase's Base network, aiming to eliminate the need for Canadian users to convert their local currency to USD stablecoins for on-chain activities. Developed by Tetra Digital Group and launched on May 4, CADD is pegged 1:1 to the Canadian dollar and backed by CAD reserves. It has secured regulatory approval from the Alberta Treasury Board and Finance, positioning it as a sanctioned financial product. The project is supported by major Canadian institutions including National Bank of Canada, ATB Financial, Wealthsimple, and Shopify. Tetra Trust, the entity behind Tetra Digital Group, is Canada's first regulated digital asset custodian. CADD is currently available on Base, Ethereum mainnet, and Tempo, with Solana integration planned. Its launch on Base is strategic due to the network's high transaction volume, lower fees compared to Ethereum mainnet, and Ethereum's security guarantees, making it suitable for facilitating everyday transactions and settlements. This development offers Canadian traders direct on-chain CAD liquidity, reducing friction and improving spreads. However, CADD's peg stability during market stress and potential regulatory hurdles across different Canadian provinces remain key areas to monitor, alongside reserve transparency and trading volume growth.

(Source：Crypto Briefing)