Loop safeguards eligible CAD balances by holding them in trust for the benefit of customers at regulated Canadian financial institutions that are CDIC members. Where CAD funds are held as eligible deposits at a CDIC member institution and properly recorded in trust, CDIC protection may apply up to applicable CDIC limits if that member institution fails.
Overview
When you hold CAD funds with Loop, eligible CAD balances are held in trust for the benefit of customers at CDIC member institutions. This helps keep customer funds separate from Loop's own operating funds and may allow eligible CAD deposits to benefit from CDIC protection.
How does CDIC protection apply?
CDIC protects eligible deposits held at CDIC member institutions if the member institution fails. For deposits held in trust, CDIC protection may apply up to $100,000 per beneficiary, per CDIC member institution, per applicable deposit insurance category, provided CDIC's trust disclosure requirements are met. Coverage applies automatically to eligible deposits. You do not need to register with CDIC.
What happens if Loop or the bank fails?
If Loop ceased operations, CAD funds held in trust are intended to remain separate from Loop's own assets. Access to those funds would depend on the applicable trust arrangement, Loop's terms, the underlying financial institution, and any insolvency or operational process.
If the CDIC member institution holding eligible CAD deposits fails, CDIC would determine coverage based on its rules and the records available for the trust account.
What CDIC protection does not cover
CDIC protection does not cover:
Loop itself;
losses resulting from Loop's own insolvency or operational failure;
amounts above applicable CDIC coverage limits;
foreign currency balances;
investment products, or non-deposit products; or
funds that are not held as eligible deposits at a CDIC member institution.
For more information, visit CDIC's website.