Version One Ventures led the round, with participation from Garage Capital. Loon will become the issuer of CADC, which was launched by Calgary fintech Paytrie in 2021, and will also use the money for developing products, hiring staff and lobbying. (The Logic)

Talking point: The Canadian-dollar stablecoin race is heating up, with investors showing growing interest in backing homegrown digital assets pegged to the value of the loonie. Last month, National Bank and ATB Financial joined a consortium of other prominent firms in a $10-million funding round for the parent company of Calgary crypto firm Tetra Trust, $3 million of which will go toward developing a new stablecoin. Ottawa is developing legislation governing stablecoins, which currently operate in a legal grey area when used for payments and settlement. Paytrie co-founder Kevin Zhang said in an email that the firm is spinning out Loon because it will be easier to audit and segregate the stablecoin’s reserves in a separate business.