#Canada #Calgary #Loon #CADC #Canadian Stablecoin

Loon's Ambitious Move to Establish a Canadian Digital Dollar

In a significant development within Canada’s financial technology landscape, Loon, a Canadian stablecoin venture, has successfully secured CAD 3 million in pre-seed funding to develop a stablecoin backed by the Canadian dollar. This funding marks an essential step in Loon's ambition to create a payment infrastructure that adheres to Canadian regulations. The pre-seed investment round was led by Version One Ventures, with notable participation from Garage Capital and a collective of strategic angel investors across Canada.

The primary objective of this funding is to accelerate product development and expand Loon’s engineering and compliance teams, facilitating their engagement with national regulators. The core idea behind Loon's innovation is to establish a bank-friendly digital currency ecosystem that allows transactions to happen seamlessly on-chain while using the Canadian dollar. As it stands, many Canadians rely heavily on US dollar stablecoins, creating challenges and potential inefficiencies in the local market. By providing a Canadian digital dollar option, Loon aims to enhance economic sovereignty and streamline domestic transactions amid a growing digital asset economy that has previously depended on foreign infrastructure.

Kevin Zhang, the CEO of Loon, stated, “Canada is at a crossroads. We can either remain dependent on foreign financial infrastructure or build our own sovereign rails for the digital era.” His words resonate with growing sentiment in the Canadian tech community — the need for a trusted, transparent system that empowers local innovation and economic independence. The CADC stablecoin that Loon acquired, originally created by Paytrie and boasting over $200 million in transaction volume since its inception in 2021, will now be under Loon's stewardship as its new issuer. This acquisition is poised to streamline Loon’s goals in creating a digital payment system tailored for the Canadian landscape.

The CADC stablecoin offers vital functionalities allowing users to settle transactions instantly and round-the-clock, bridging traditional banking with blockchain technology. This innovation holds transformative potential, illustrated by scenarios where a freelance developer from Halifax can receive payments from a Vancouver client in mere seconds or a Toronto merchant can settle deals with international suppliers in real-time. Such capabilities would eliminate the slow processes and additional costs typically associated with conventional banking.

To ensure they meet regulatory standards, Loon has already taken important steps to comply with local laws by pre-filing a prospectus with the Alberta Securities Commission (ASC), equipping the company with initial approvals necessary for full regulatory compliance. Their proactive approach reflects a commitment to transparency and accountability in the stablecoin sector.

As Boris Wertz, Founder and General Partner at Version One Ventures, puts it, “We believe the next generation of financial infrastructure will be built on open, transparent rails. Loon is creating the foundation for a digital Canadian dollar, a critical step toward a more inclusive and sovereign financial system.” Michael McCauley, General Partner at Garage Capital, also emphasized the importance of sovereign digital payment infrastructure, stating, “Canada needs effective digital frameworks, and now is the time.”

Looking ahead, Loon is set to begin onboarding distribution partners in the coming weeks. This will include diverse platforms such as virtual currency exchanges and fintech applications, thereby laying the groundwork for the broader rollout of their Canadian stablecoin. Interested parties can find more information about CADC and how to engage with this new initiative by visiting Loon's official website.

In summary, Loon's endeavors to establish a regulated digital Canadian dollar signify a pivotal moment in the advancement of Canada’s financial ecosystem. By launching a homegrown stablecoin, Loon not only aims to facilitate easier transactions for its users but is also spearheading a potential shift towards a more independent financial future for Canada.