Tetra Digital raises $10 million to build a Canadian dollar–backed 1:1 stablecoin aiming for a 2026 launch pending regulatory approval
Tetra Digital Group has raised $10 million to develop a 1:1 stablecoin backed by Canadian dollars. The project targets a 2026 launch but requires final regulatory approval, and involves a mix of traditional banks and fintech firms with Tetra Trust acting as the qualified custodian and issuer.
Funding and partners
The funding round included banks, investment platforms and technology firms, reflecting a union between traditional finance and crypto. Participants named include Shakepay, ATB Financial, National Bank and Shopify, and the backing from these institutions is presented as a source of trust and compliance for the planned stablecoin.
Design, custody and reserves
The token will be pegged 1:1 to the Canadian dollar and supported by fiat reserves held in Canada, with Tetra Trust as the institutional custodian that will issue the stablecoin. Planned audits are intended to demonstrate the 1:1 peg, and the issuance and redemption process is designed to use compliance steps such as KYC/AML and reporting to regulators, while institutional custody aims to connect the token with wallets, exchanges and local payment rails.
Advantages and risks
Advantages
Domestic backing means reserves remain in Canada, lowering foreign counterparty risks, and an institutional structure offers custody and governance suitable for corporate clients and supervisors. The token may integrate with payments, remittances and on‑chain liquidity for local DeFi, and the proactive compliance plan is intended to build regulatory trust that could help both businesses and consumers adopt the stablecoin.
Risks and challenges
The project faces significant challenges, chiefly the need for final approval from Canadian authorities, and must satisfy rules on capital requirements, segregation and reserve audits. There are open questions about redemption under stress, coordination with international rules and potential interactions with CBDC plans, and the initiative will require careful oversight to prevent system problems and protect users.
Financial sovereignty and adoption
A regulated Canadian stablecoin could strengthen financial sovereignty by offering a domestic digital currency option and serve as an alternative to tokenized currencies originating outside Canada. If the project demonstrates operational transparency and regulatory compliance, it could aid cross‑border payments and expand local DeFi products, while balancing innovation with user safety to fit within a careful regulatory framework.
if Tetra Digital meets regulatory requirements and maintains transparent reserve management, the stablecoin could become a significant component of Canada’s digital payments landscape, though its ultimate impact will depend on approvals, audits and adoption tracked in reports such as those from BusinessWire.
