Calgary-based Loon has raised $3 million in pre-seed financing to build a Canadian-dollar-backed stablecoin designed to operate under domestic regulation — a move the company says will help modernize Canada’s financial infrastructure for the digital age.
The round was led by Version One Ventures, with participation from Garage Capital and a syndicate of strategic Canadian angel investors. Funding will accelerate product development, expand engineering and compliance teams, and support national regulatory engagement.
As part of the announcement, Loon also revealed it has acquired the CADC stablecoin, originally launched in 2021 by Paytrie with over $200 million in transaction volume, and will assume responsibility as its new issuer.
“For years, Canada’s digital-asset economy has relied primarily on U.S. dollar stablecoins, exporting value abroad,” said Kevin Zhang, CEO of Loon. “By providing a regulated, trusted digital Canadian dollar, we’re unlocking the next generation of innovation — from payments to capital markets.”
Loon has pre-filed a prospectus with the Alberta Securities Commission (ASC) as it works toward full regulatory approval. The company says it is collaborating closely with regulators to establish rigorous standards for the emerging stablecoin sector.
“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 & General Partner of Version One Ventures. Michael McCauley, General Partner at Garage Capital, added that “Canada needs sovereign digital payment infrastructure — and now is the time.”
Over the coming weeks, Loon plans to onboard its first distribution partners, including virtual-currency exchanges, fintech applications, and liquidity providers.
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