A Calgary-based financial company, Tetra Digital Group, has raised $10 million to build a Canadian stablecoin. The project has strong backing from well-known names like Shopify, Wealthsimple, and National Bank, showing that big companies believe in this future.
A stablecoin is a type of cryptocurrency that is tied to something real, like a national currency or gold. In this case, the new coin will be linked to the Canadian dollar, meaning every digital coin will match the value of one real dollar.
The company hopes to launch the new coin next year, giving Canadians a digital version of their own money that can be used safely for payments and international transfers.
Unlike regular cryptocurrencies such as Bitcoin, stablecoins do not change wildly in value. Their price stays steady because each coin is backed by an actual currency or asset.
For example, if someone owns 100 Canadian-dollar stablecoins, they should be able to exchange them for 100 Canadian dollars at any time. Supporters say this makes payments cheaper, faster, and easier, especially across borders.
According to Didier Lavallee, the CEO of Tetra Digital, Canadian businesses need a coin that works in Canadian dollars. Today, most stablecoins are tied to U.S. dollars, which means Canadian companies end up depending on U.S. systems.
Lavallee believes this is about economic independence. Using a Canadian-backed stablecoin would keep money flowing into Canada instead of strengthening the U.S. economy.
He says stablecoins will let Canadians pay for online shopping, send money to family overseas, and trade without extra fees or long waits.
The U.S. has already passed a new law allowing big firms like Walmart to create stablecoins backed by U.S. dollars. Other countries, like China, are also racing to develop their own digital currencies to stay competitive.
Supporters in Canada argue that the country must act fast or risk falling behind. They see stablecoins as part of Canada’s financial future.
The Bank of Canada considered launching its own digital loonie but decided not to. Instead, private companies like Tetra Digital are stepping in.
One of the biggest challenges is regulation. Right now, Canadian authorities often treat stablecoins as securities, like stocks, which creates legal hurdles.
Companies like Coinbase (a crypto trading platform that also supports Tetra) want the government to set up clear rules. They argue that regulation should ensure coins are properly backed by real assets, so Canadians know their money is safe.
Experts say these rules should include:
How much cash or treasury bonds must back the coin.
Who is responsible for protecting the money.
How to prevent fraud or collapse if many people cash out at once.
Some experts remain skeptical. Brent Arnold, a Canadian lawyer who works in cybersecurity, worries that without strong proof and regulation, stablecoins could collapse if people lose trust.
But others believe that with strong players like Wealthsimple, National Bank, and Shopify involved, the project is more credible.
Supporters call it a “defining moment” for Canada’s digital economy, while skeptics still question whether Canadians really need a stablecoin.
If successful, this new digital coin could:
Make international transfers faster and cheaper.
Help Canadian businesses trade in their own currency.
Allow people to shop online and pay directly in Canadian dollars.
But questions remain about security, regulation, and whether the public will actually use it.
Canada now stands at a crossroads in the digital money race. With $10 million in funding and support from big companies, Tetra Digital’s stablecoin could be the first step toward a new era of digital Canadian dollars.
But until Ottawa sets clear rules, the future of a Canadian stablecoin remains uncertain.
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