Calgary fintech startup Loon has secured $3 million in pre-seed financing to develop a Canadian-dollar-backed stablecoin designed to operate under domestic regulation, marking a significant step toward sovereign digital payment infrastructure in Canada.
The round was led by Version One Ventures, with participation from Garage Capital and a syndicate of Canadian angel investors. The funding will accelerate product development, regulatory engagement, and team expansion across engineering and compliance.
As part of the announcement, Loon also revealed it has acquired the CADC stablecoin from Paytrie. Launched in 2021, CADC has facilitated more than $200 million in on-chain transaction volume. Loon will assume responsibility as CADC’s new issuer and aims to bring it under a fully regulated framework.
“For too long, Canadian innovators have relied on U.S. dollar stablecoins to build digital financial products,” said Kevin Zhang, CEO of Loon. “By creating a regulated, transparent Canadian-dollar stablecoin, we’re helping Canada build its own digital financial rails — designed for speed, inclusion, and sovereignty.”
Loon has pre-filed a prospectus with the Alberta Securities Commission (ASC) as the first step toward regulatory approval. The company is working closely with Canadian authorities to define standards and safeguards for stablecoin issuance.
“Loon is creating the foundation for a digital Canadian dollar — a critical step toward a more inclusive and sovereign financial system,” said Boris Wertz, Founder and General Partner at Version One Ventures. Michael McCauley, General Partner at Garage Capital, added, “Canada needs its own trusted digital payment infrastructure — and now is the time.”
In the coming weeks, Loon plans to begin onboarding virtual-currency exchanges, fintech applications, and liquidity partners to expand CADC’s reach and usability across the country’s financial ecosystem.
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