It was established by Charles III William, Margrave of Baden-Durlach as a reward for merit and to mark the laying of the foundation stone of his residence at Karlsruhe Palace.

Its motto was Fidelitas (Latin for "Fidelity"), which is also part of Karlsruhe, Germany's coat of arms.

From 17 January 1840, it was made the highest order in Baden and renamed the Hausorden der Treue.

By a statute of 17 June 1840, it was expanded back into two classes and reserved for princes of the grand ducal house, foreign sovereigns and higher statesmen with the title of "Excellency".

Even after the monarchies of Germany were abolished, it was awarded as a dynastic order by the House of Baden.