OSC Greenlights Loon's CADC Stablecoin

The Ontario Securities Commission (OSC) has granted receipt for the final prospectus of the CADC Reserve Trust, allowing Calgary-based startup Loon to issue its Canadian dollar-backed stablecoin, CADC, in Canada, as BetaKit first reported. According to BetaKit, the OSC also provided exemptive relief to Paytrie—the company from which Loon spun out last year—to distribute the token.

Under the established model, $1 CAD is deposited into a reserve trust account with ATB Financial for every CADC token purchased. Kevin Zhang, CEO and co-founder of Loon and co-founder of Paytrie, told BetaKit that the process required "significant" legal investment and 18 to 24 months of negotiations with regulators. Zhang noted that the company initially worked with the Alberta Securities Commission before being redirected to the OSC.

From a market perspective, the move aims to reduce the amount of value exported via US dollar-backed alternatives and lower friction for domestic users. While Toronto-based Stablecorp received similar approval last year for its QCAD token, and Calgary's Tetra Trust is pursuing its own CADD stablecoin, BetaKit reports that Paytrie is only the second non-cryptocurrency trading platform to secure such relief, following US-based ZeroHash.

Since its 2021 launch, CADC has facilitated more than $1 billion CAD in transactions. Loon, which launched last year with $3 million CAD, acquired CADC from Paytrie in 2025. Zhang told BetaKit that while the Government of Canada's recently proposed stablecoin regulations create a level playing field rather than a domestic advantage, the ability to deliver CADC outside of crypto exchanges will enable more decentralized finance and cross-border use-cases.