News Summary

Calgary-based FinTech startup Loon has successfully raised $3 million CAD in pre-seed funding to develop a regulated, Canadian dollar-backed stablecoin. This newly-formed company, spun out from Toronto’s Paytrie, will focus on the growth of Paytrie’s CADC stablecoin, positioning itself as a neutral party in the digital asset economy. Loon’s pre-seed round was led by Vancouver’s Version One Ventures, with contributions from Kitchener-Waterloo’s Garage Capital and undisclosed Canadian angel investors. The company plans to invest in product development, expand its engineering and compliance teams, and engage with Canadian securities regulators. Loon has pre-filed a prospectus for CADC with the Alberta Securities Commission, marking a step towards regulatory approval. Loon CEO Kevin Zhang aims to create a foundation for a digital Canadian dollar, promoting a more inclusive financial system. Zhang has stepped down from Paytrie to focus on Loon, which will operate independently.