A new player is emerging in Canada’s digital finance ecosystem. Loon, a FinTech startup spun out of Toronto-based Paytrie, has raised $3 million CAD in pre-seed funding to take over and scale CADC, a Canadian dollar-backed stablecoin first launched by Paytrie in 2021.
The funding round was led by Version One Ventures, with participation from Garage Capital and several undisclosed Canadian angel investors. The investment will fuel product development, regulatory engagement, and team expansion across engineering and compliance.
“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.
From Paytrie Experiment to Standalone Venture
Initially developed as a side project at Paytrie, CADC quietly became one of Canada’s most used stablecoins, facilitating over $200 million in transaction volume on the Base Network in 2025.
“There hasn’t been a lot of fanfare around it,” said Kevin Zhang, Co-founder and CEO of Loon, who previously co-founded Paytrie. “But the demand has been clear — CADC has proven that Canadians want a domestic, transparent, and easy-to-use stablecoin.”
Zhang said moving CADC under Loon allows the team to focus exclusively on regulatory clarity, auditability, and user experience, setting the stage for a fully regulated digital Canadian dollar.
Paytrie will continue to offer CADC to its users but will no longer act as its issuer once the transition is complete later this year. Zhang has stepped down from his role at Paytrie to lead Loon full-time, bringing several former Paytrie team members with him.
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Building a Regulated Digital Canadian Dollar
To prepare for the handover, Loon has pre-filed a prospectus for CADC with the Alberta Securities Commission, marking a key step toward becoming Canada’s first regulated CAD-backed stablecoin issuer.
Zhang noted that Loon has been in dialogue with Canadian regulators for several years, with growing optimism following signals from the Bank of Canada and government officials that stablecoin regulation may soon be introduced in the federal budget.
“We want this to flourish in Canada,” Zhang said. “Stablecoins shouldn’t just be pegged to the U.S. dollar. A strong digital Canadian dollar supports local innovation, reduces friction for domestic users, and keeps value in our own economy.”
A Competitive Yet Collaborative Stablecoin Landscape
Loon joins a small but fast-growing field of Canadian companies developing CAD-backed stablecoins — including Stablecorp, Tetra Digital Group, and Cybrid. Each aims to provide the infrastructure or issuance capabilities needed to modernize Canada’s financial rails.
Zhang envisions CADC as a “neutral, open standard” within this emerging ecosystem — one that could serve as a shared foundation for multiple partners, exchanges, and institutions.
“There’s room for several players in this market,” he said. “Our goal is to make CADC the most transparent, reliable, and accessible Canadian dollar stablecoin — a bridge between traditional finance and Web3.”
About Loon
Loon is a Calgary-based FinTech startup building the foundation for a regulated, Canadian dollar-backed stablecoin. Spun out of Paytrie in 2025, Loon is the new issuer of CADC, Canada’s most used CAD-pegged stablecoin. Led by Paytrie co-founder Kevin Zhang, Loon’s mission is to create a transparent, compliant, and scalable digital dollar for Canada — empowering businesses, financial institutions, and individuals to transact seamlessly across borders and blockchains.
