Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Loon Raises $3M and Acquires CADC Stablecoin
Stablecoins | Nov 3, 2025
Image from Loon press release
Canada’s Stablecoin Activity Increases as Loon Builds Regulated Digital Dollar Ahead of the Federal Budget
On October 27, 2025, Loon announced a CAD $3 million pre-seed round and the acquisition of the CADC stablecoin, led by Version One Ventures with participation from Garage Capital and Canadian angels.
The company acquired CADC, a stablecoin originally launched by Paytrie Inc. in 2021 that has processed more than CAD $200 million in on-chain transactions, according to the announcement.
See: Stablecoin Payments Have Wings – Are You Ready?
Loon aims to develop a Canadian-dollar stablecoin that operates under Canadian regulation and has pre-filed a prospectus with the Alberta Securities Commission as the first step toward full approval. The company says it is working closely with regulators to define clear standards for the stablecoin sector and strengthen accountability across the industry.
Short term priorities for Loon include onboarding distribution partners (exchanges, fintech apps, liquidity providers) and building trust through clear rules, transparent reserves, and reliable operations in a market long dominated by US dollar stablecoins.
Connecting Canadian Banking to Blockchain Rails
CADC allows users and businesses to send and receive Canadian dollars on blockchain networks instantly and at any time. This means a developer in Halifax can receive payment from a client in Vancouver within seconds, or a Toronto-based importer can complete transactions with suppliers abroad without relying on traditional banking hours or payment delays.
The system is designed to provide continuous access, real time settlement, and deeper liquidity, while maintaining wholesale-level foreign exchange efficiency.
See: Canada’s Payments Innovation Push Gains Speed
Kevin Zhang, CEO of Loon:
"Canada is at a crossroads. We can either remain dependent on foreign financial infrastructure or build our own sovereign rails for the digital era. By providing a regulated, trusted digital Canadian dollar, we're unlocking the next generation of innovation, from payments to capital markets."
Stablecoin Activity Increasing Across Canada Ahead of Budget 2025
The timing of Loon’s raise aligns with national policy attention on digital assets. The Bank of Canada urged policymakers to weigh the merits of federal stablecoin regulation in September 2025, showing growing support in Canadian-dollar models. See NCFA’s analysis of Canada’s stablecoin race entering a critical phase, which describes how policy and market interest are converging.
Also see NCFA’s recent coverage of banks and fintechs backing a regulated stablecoin with Tetra Digital Group, expanding interest in compliant Canadian-dollar payment infrastructure. Related initiatives include Stablecorp’s $5M raise to accelerate QCAD adoption, VersaBank’s plan to launch VCAD, the world’s first bank issued deposit based digital currency, and its U.S. pilot of tokenized deposits, activity all contributing to Canada’s development of regulated digital currency infrastructure.
The policy backdrop includes expectations that the upcoming federal budget 2025 will address financial services modernization and digital assets.
Closing Thought
Canada is moving from talk to implementation on regulated digital currency rails. Loon's pre-seed round confirms that a trusted CAD-backed model can attract capital while engaging with regulators. Stablecoins are practical and essential financial infrastructure with potential benefits for payments, cross-border settlement, and market efficiency, all of which align with the need to focus on innovation, access to capital, and national competitiveness.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
 |  |  |
|---|---|---|
 |  |  |
Leave a Reply