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. According to reports from Business Wire, institutions can now hold CADD through Anchorage Digital as of May 22, a federally chartered crypto bank and qualified custodian that offers regulated digital asset infrastructure to banks, fintechs and asset managers. In its official announcement, Tetra Digital Group described the partnership, stating "institutions can now custody CADD with Anchorage Digital," emphasizing that Anchorage Digital provides "regulated digital asset custody infrastructure for institutional clients."
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. As reported by Business Wire, 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. 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 stablecoin's structure "aligns with Canada's emerging stablecoin framework" that emphasizes high-quality liquid asset reserves and qualified custodians, with regulatory approval ensuring national compliance and legal recognition.
For CADD, this partnership 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. According to BNN Bloomberg, CADD is positioned as the first regulated stablecoin issued by a financial institution in Canada, with one CADD designed to always equal one Canadian dollar, targeting use cases like domestic payments, treasury and cross border transfers. The company 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 multi-chain approach allows flexible integration into existing financial and blockchain systems, with institutions able to integrate CADD directly into existing workflows through Anchorage Digital.
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. According to Tetra Digital Group, 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. This development 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. The collaboration underscores the growing link between traditional finance and blockchain innovation, with Anchorage Digital's support ensuring compliance with regulatory standards and secure storage for institutional clients.
The CADD partnership comes amid broader institutional market volatility, with digital asset funds experiencing more than $1 billion in outflows last week as escalating Middle East tensions prompted investors to reduce risk exposure. According to CoinShares data, the withdrawals marked one of the largest weekly reversals so far this year, with Bitcoin and Ether products accounting for the bulk of the redemptions. The sell-off came as markets dialed back hopes for a durable ceasefire between the US and Iran, prompting a broader flight from risk assets despite Bitcoin's reputation as a macro hedge. This volatility underscores how quickly sentiment can shift when geopolitical shocks hit global markets, though institutional demand for crypto remains structurally stronger than in prior market cycles.
