July 28, 2026 | NCFA Question | Digital Assets Blockchain And Tokenization, Banking And Credit, Payments And Money Movement
Last Updated: July 28, 2026
Status: Emerging
Organizations: Credit Union Digital Asset Task Force, St. Cloud Financial Credit Union, Amanda Wick, World Council of Credit Unions, National Digital Banking Working Group, Central 1, Large Credit Union Coalition, Payments Canada, Stablecore, Curql, TruStage, CrossState Credit Union Association, Metallicus, Q2, Jack Henry, Coinbax, NCUA
Shared Diligence Before Shared Digital Asset Products
The U.S. initiative is led by Chase Larson, Executive Vice President and Chief Lending Officer at St. Cloud Financial Credit Union. It is designed to help credit union boards and executives understand stablecoins, tokenization, crypto assets, regulation, infrastructure and risk.
Starting with education and coordination makes sense. Credit union leaders need a practical way to compare the member value, operating costs and regulatory responsibilities before deciding whether a digital asset service belongs in their strategy.
Other developments show how quickly the discussion is advancing. Credit unions are joining early access programs, testing infrastructure through association cohorts, assessing platform integrations and considering stablecoin and tokenized deposit services.
The World Council of Credit Unions has also placed digital money on the cooperative finance agenda. Its July 2026 stablecoin paper examines potential effects on deposits, payments, member relationships and the future role of credit unions.
Canada already has groups that coordinate technology procurement, common architecture, digital identity and payments modernization. The practical question is whether those collaborative models should now be used to study digital assets together.
Strategic Takeaway
Canadian credit unions already have collaboration models that could support shared digital asset research, vendor assessment and controlled testing. What they still need is an agreed member or operating problem to solve and a regulatory route that works across federal and provincial responsibilities. Shared diligence is the most practical place to begin.
Canadian credit unions already collaborate on major technology purchases, common architecture and payments infrastructure (confirmed foundation)
Credit unions account for approximately $764 billion of the $771.3 billion captured in Canada’s community finance market baseline (economic scale)
Shared research, procurement and governance could reduce repeated legal, security and technology work (transferable capability)
Credit union initiatives now cover education, early access, sandbox testing, stablecoins, tokenized deposits, custody and platform integration (international progress)
Existing credit union groups could evaluate the market without creating another organization (Canadian opportunity)
Key Questions: Deposit protection, reserves, custody, liquidity, redemptions, governance and member protection require clear treatment
How Canadian Credit Unions Already Work Together
Canada’s strongest foundation isn’t a blockchain pilot. It is the way credit unions already collaborate on expensive technology, procurement, architecture and national infrastructure.
Some of those capabilities could transfer directly to digital asset work. Others are closely related. Together, they show that institutions can share complex diligence while retaining control over contracts, governance and implementation.
The National Digital Banking Working Group coordinated vendor review, procurement, migration planning and implementation after Central 1 announced its digital banking transition. Its public membership page listed 59 institutions, while 37 selected Intellect Design Arena’s eMACH.ai platform.
This was more than a discussion forum. Participating institutions pooled expertise and bargaining power, then made their own implementation decisions. A digital asset initiative could follow the same model without requiring every credit union to adopt the same product.
The Large Credit Union Coalition offers another example. Its work has included artificial intelligence, digital identity, common architecture, collective purchasing and payments modernization.
Digital identity, architecture and collective purchasing could support the evaluation of wallet providers, custodians, transaction monitoring systems and settlement networks. The same structure could help institutions compare risks, costs and member use cases.
Payments coordination is already familiar. Central 1 and the other Group Clearer centrals created the Payments Modernization Advisory Group with 12 credit unions to represent sector requirements during national infrastructure development.
That experience is relevant because stablecoins and tokenized deposits would need to interact with clearing, settlement, liquidity, fraud controls and account infrastructure. Many of those questions also also relevant to Canada’s Real Time Rail development.
The opening of Payments Canada membership creates another connection. Credit unions, payment service providers, fintechs, foreign exchange firms and digital asset companies are gaining a wider role in national payment infrastructure. NCFA’s analysis of Canada’s financial infrastructure shows how access, licensing and participation are evolving.
Consumer data access is important too. Canada’s open banking framework is creating new expectations around consent, identity, liability and financial service integration. Digital asset products offered through regulated institutions would need to fit within that same trust environment.
The size of the sector makes this more than a technology discussion. The Canadian community finance market baseline identified 306 credit unions holding approximately $764 billion of the $771.3 billion in total assets included in the dataset.
The SVX report doesn’t examine stablecoins or digital assets. Its relevance is the amount of member and community capital already managed through cooperative institutions. Changes to deposits, payments and settlement infrastructure could therefore have material consequences for credit unions.
Canada isn’t starting with an empty page. Credit unions already know how to organize expertise, negotiate together, coordinate architecture and represent shared interests.
The next step is deciding whether digital assets deserve a place within that existing collaborative work.
How Other Credit Unions Are Approaching Digital Assets
No common single operating model has emerged. Credit unions and their service organizations are taking different approaches based on regulation, member needs, internal capability and available partners.
Some initiatives begin with education and advocacy. Others involve early access, sandbox testing, planned products, core integrations or regulatory development. These examples offer reference points for Canada rather than a ready made plan.
Market Evidence
Click each to expand
1. A U.S. Task Force Starts With Executive Education United States
Emerging Coordination
Amanda Wick announced a Credit Union Digital Asset Task Force led by Chase Larson, Executive Vice President and Chief Lending Officer at St. Cloud Financial Credit Union.
Its scope includes stablecoins, crypto assets, tokenization, regulation, infrastructure and risk.
The intended audience includes credit union boards and executives.
The initial focus is practical education and shared understanding.
The model gives leaders a way to compare developments before making product decisions.
The initiative brings digital assets into a sector level credit union discussion. It also provides a useful model for Canada, where an existing group could coordinate education, research and early use case assessment.
2. WOCCU Treats Stablecoins As A Cooperative Strategy Question Global
Global Strategic Framework
The World Council of Credit Unions released the first paper in a planned series examining how new forms of digital money could affect the global credit union system.
The first paper focuses on stablecoins and their potential effects on deposits, payments and member relationships.
WOCCU identifies deposit displacement, reduced payment activity and exclusion from new payment infrastructure as possible risks.
It calls for proportionate regulation that recognizes cooperative ownership and structure.
Boards and senior leaders are encouraged to treat stablecoins as a governance and planning issue.
Education, partnerships, shared investment and collective action are identified as possible responses.
Future papers are expected to examine tokenized deposits, central bank digital currencies and regulatory design.
WOCCU isn’t calling on every credit union to issue a stablecoin. It is asking whether cooperative institutions have the authority, flexibility and readiness to participate as payment and deposit infrastructure changes.
3. Named Credit Unions Enter Early Access United States
Early Access
Stablecore, Circuit and Curql launched an early access program involving RBFCU, Stanford Federal Credit Union, La Capitol Federal Credit Union and other institutions representing about US$25 billion in combined assets.
The program covers stablecoin payments and tokenized deposits.
It also includes digital asset accounts, Bitcoin access, staking, compliance and member education.
Participating institutions can examine business, technology and compliance requirements together.
The structure allows credit unions to learn from a shared program while making their own decisions.
This initiative has progressed beyond general education. Named credit unions are evaluating defined services through an organized early access program.
4. TruStage Plans A Credit Union Stablecoin United States
Planned Product
TruStage announced plans for TruStage Stablecoin, or TSDA, as a fully reserved U.S. dollar stablecoin for community based financial institutions.
TruStage says it works with more than 93% of over 4,300 U.S. credit unions.
Those institutions collectively hold more than US$2 trillion in assets.
Proposed uses include continuous money movement and faster settlement.
The distribution model would use an established credit union service provider.
TSDA combines a named product, a large credit union network and a defined payment use case. It represents one of the more developed cooperative stablecoin strategies.
5. CrossState Brings 50 Credit Unions Into One Program United States
Sandbox And Pilot Preparation
CrossState Credit Union Association and Metallicus launched Innovation Program 2.0 with an initial cohort of 50 credit unions in Pennsylvania and New Jersey.
The program covers stablecoins, digital identity, blockchain infrastructure and faster payments.
It combines executive education with sandbox testing.
Participants can compare use cases, controls and vendors through an association structure.
Credit unions can explore the technology without each institution building its own testing environment.
This may be one of the most relevant models for Canada. Institutions can learn and test together without requiring every participant to become an issuer or infrastructure operator.
6. Q2 Connects Digital Asset Tools To Banking Platforms United States
Available Infrastructure
Q2 partnered with Stablecore to connect stablecoins, tokenized deposits and digital asset accounts with infrastructure already used by banks and credit unions.
Institutions can access the capabilities through Q2 Innovation Studio.
The model reduces the need to assemble a separate technology stack.
Amarillo National Bank and Bank of Utah were named as initial customers.
The partnership gives other financial institutions a route to assess similar services.
This approach brings digital asset capabilities into existing banking technology rather than asking institutions to build a separate platform.
7. Coinbax Opens A Route Into Jack Henry Systems United States
Integration Access
Coinbax joined the Jack Henry Fintech Integration Network to connect stablecoin payment infrastructure with Jack Henry core and digital banking platforms.
Jack Henry technology serves more than 7,400 banks and credit unions.
Coinbax lists programmable escrow, stablecoin payments, cross border transfers, payouts and core reconciliation as use cases.
The network provides integration resources and a route to institutional deployment.
Finex Credit Union has participated as a design partner.
The model shows how a credit union could access digital asset infrastructure through technology relationships it already understands.
8. NCUA Is Developing A Credit Union Stablecoin Rulebook United States
Proposed Regulatory Framework
The National Credit Union Administration has proposed rules for payment stablecoin issuers affiliated with federally insured credit unions.
The framework covers applications, licensing and regulatory review.
It would govern how federally insured credit unions may invest in issuer subsidiaries.
Proposed standards address reserves, redemption, operations, governance and risk management.
Related proposals cover customer identification and Bank Secrecy Act duties.
NCUA would supervise qualifying credit union subsidiaries.
The proposals give U.S. credit unions a clearer view of how ownership, issuance and supervision could work.
Canada doesn’t yet have a comparable credit union framework connecting federal stablecoin requirements with provincial regulation, deposit protection and cooperative ownership. NCFA’s stablecoin regulatory guide tracks the federal framework and the decisions still ahead.
The evidence identifies several ways credit union associations, centrals and collaborative groups could investigate digital assets while controlling cost and risk.
Each option addresses a different problem. Research and testing can be shared, while boards retain responsibility for product approval, compliance, member communication and operations.
Shared research and regulatory analysis could reduce repeated legal, policy and vendor work. A group could map federal and provincial requirements, compare stablecoins with tokenized deposits and examine deposit protection, custody, reserves and redemptions. That work would remain useful even if no product followed.
Coordinated policy engagement could help regulators understand how cooperative ownership, provincial supervision and deposit protection differ from commercial bank and nonbank issuer models. Credit unions may need to take part in regulatory design before deciding whether to offer a service.
Controlled testing could let institutions examine technology, controls and use cases before making production commitments. Shared sandbox work could cover wallet verification, settlement, transaction monitoring, reconciliation, vendor performance and incident recovery.
Cross border business payments may offer one of the clearest commercial tests. Credit unions could retain the member relationship and Canadian dollar account while using regulated digital settlement infrastructure behind the scenes. Foreign exchange, sanctions, wallet ownership, liquidity and redemption would still require strong controls.
Tokenized deposits may fit the credit union model better than a separate stablecoin. A tokenized deposit could remain a claim on a regulated institution rather than becoming a separate private currency. Canada would still need clarity on ownership, settlement finality, interoperability and provincial deposit insurance.
Shared custody and wallet infrastructure could give smaller institutions access to security and compliance capabilities they couldn’t justify independently. The trade off is concentration risk. One vendor failure could affect several institutions, making asset segregation, recovery and liability allocation critical.
Identity and compliance tools may offer a lower risk starting point. Common wallet verification, member authentication, sanctions screening and transaction monitoring could support future payment or custody services without creating immediate issuance or balance sheet exposure.
Business settlement and treasury pilots could test supplier payments, commercial settlement, liquidity management or transfers between institutions. These controlled business uses may have clearer operating value than retail crypto trading.
Shared stablecoin infrastructure would require the greatest level of coordination. Participants would need to agree on reserves, redemption, governance, technology, liquidity, fees, branding and loss allocation. The international examples show how the model could work, but Canada doesn’t need to begin there.
Waiting is also a valid decision. A joint review may find that member demand is weak, costs are too high, regulations remain incomplete or existing payment systems solve the same problem with less risk.
A Practical Starting Point
An existing credit union group could map the rules, rank the use cases, compare vendors and identify one or two controlled tests. Its job would be to determine whether a shared service is justified, not to begin with a stablecoin or blockchain product already selected.
Each option should pass five tests:
What member or operating problem would it solve?
What work can participating institutions share?
What responsibility must remain with each credit union?
Deposit protection remains one of the largest questions. Members need to know whether a tokenized deposit would receive the same provincial protection as funds in an ordinary account. Institutions also need clarity on reserve ownership, liquidity and redemptions during stress.
Custody raises a different set of issues. Who controls the keys? Are assets legally separated if a vendor fails? Who carries the loss when funds go to the wrong wallet? How does a member recover access after fraud, death or lost credentials?
AML controls wouldn’t end at onboarding. Institutions would need to verify wallet ownership, monitor transactions, screen counterparties and decide how to handle transfers involving self hosted wallets.
Shared governance may prove harder than the technology. Participants would need rules for choosing vendors and networks, changing operating standards, setting fees and allocating losses when an institution or service provider fails.
The Bottom Line
Current evidence doesn’t support rushing into a shared Canadian credit union digital asset product. It does support sharing the work required to understand whether one could solve a real problem.
Canadian credit unions already collaborate on technology, architecture, procurement and payments infrastructure. They also manage approximately $764 billion within the country’s community finance baseline. That gives the sector both the capability and the economic reason to pay attention.
Internationally, cooperative institutions are progressing through education, advocacy, early access, sandbox testing, platform integration, planned stablecoins and regulatory development. None offers a complete Canadian template.
The conversation has already begun internationally. Canada’s next decision is whether credit unions build on the collaboration they already have, identify the use cases that could create real member value and help define the market before others define it for them.
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Frequently Asked Questions
Are Canadian credit unions currently issuing stablecoins?
No shared Canadian credit union stablecoin has been publicly announced. The more immediate opportunity is coordinated research into member demand, regulation, infrastructure and risk.
What is a tokenized deposit?
A tokenized deposit is a digital representation of a deposit held with a regulated financial institution. Unlike a separate stablecoin, it may remain a direct claim on the institution, although legal treatment, settlement and deposit protection must be clearly defined.
Why would credit unions work together on digital assets?
Shared work could lower the cost of legal analysis, vendor assessment, cybersecurity review, compliance design and controlled testing. Each credit union could still decide independently whether to offer a product.
Could stablecoins reduce credit union deposits?
They could affect deposit and payment relationships if members begin holding or transferring more value through external digital money platforms. The outcome would depend on adoption, regulation, product design and whether credit unions participate directly.
What is the most practical first step for Canada?
An existing credit union association, central or working group could coordinate education, regulatory analysis, use case ranking and limited testing before institutions commit to a shared product or infrastructure provider.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem providing education, market intelligence, industry stewardship, networking and funding opportunities to thousands of members. NCFA works with industry, government, partners and affiliates to support a competitive and innovative fintech and funding sector in Canada. Join Canada’s Fintech and Funding Community or learn more at NCFA Canada.
July 28, 2026 | NCFA Resource | Sustainable Finance And ESG, Financial Inclusion, SME Finance And Business Banking
A National Baseline For Community Investment
On July 23, 2026, SVX published Canada’s first comprehensive national assessment of community finance. The report identifies 768 institutions, estimates their combined assets and examines how community finance products direct money into housing, local businesses, Indigenous entrepreneurship, food systems, clean energy and other community priorities.
Its most useful contribution is a baseline. Until now, Canada didn't have a public national picture connecting credit unions, Community Futures organizations, Indigenous Financial Institutions, community loan funds, land trusts, community bond issuers and related intermediaries. The report brings these organizations together through a common definition, a product dataset and an interactive market map.
What The $771.3 Billion Actually Measures
The report’s three main asset figures describe different parts of the market:
$771.3 billion in estimated total assets across the community finance dataset
$764 billion attributed to 306 credit unions
$7.3 billion held by the remaining community finance network when credit unions are excluded
The $771.3 billion headline doesn’t mean that amount has been invested directly into community projects. It mainly reflects the institutional assets of large credit unions, including Desjardins, Vancity and Assiniboine Credit Union.
Credit unions account for approximately 99% of the reported assets, although they represent 40% of the 768 institutions. Community Futures organizations form another 34% of the network, followed by Indigenous Financial Institutions at 8%, community land trusts at 6%, community loan funds at 4% and community bond issuers at 4%.
That makes the $7.3 billion figure particularly useful. It provides a clearer estimate of the specialized community finance market operating outside credit unions. The report also identifies $755 million held by Indigenous Financial Institutions and $153.8 million raised through community bonds from 28 issuers.
Credit unions still belong in the national picture because member ownership and local deployment are central to the report’s definition. The DUCA Impact Lab discussion shows how a credit union can test lending models designed for people and businesses underserved by conventional criteria.
Community finance also means something different from community capital raising. In this report, community finance describes institutions that pool and direct capital toward a defined place, population or shared need. Differently, investment platforms that support equity crowdfunding like FrontFundr uses community capital to describe companies raising money from customers, supporters and retail investors through regulated crowdfunding. NCFA’s review of Canadian equity crowdfunding covers that second model.
The two can overlap. A community bond issuer or investment cooperative may attract individual investors while also qualifying as a community finance institution. A startup supported by its customers through an equity crowdfunding campaign doesn’t automatically meet the report’s institutional definition.
What The Dataset Reveals
The institutional map combines 107 organizations in the Catalyst Community Finance Collection with 661 additional organizations identified through the Canadian Community Finance Intermediary Market Map.
Geographic coverage extends across every province and territory. Quebec contains 32.7% of mapped institutions, followed by Ontario at 25% and British Columbia at 12.9%. The geography chart is based on 752 institutions because location data weren’t available for every organization.
Assets are more concentrated than institution counts. Quebec holds 54.9% of total reported assets, largely because of the Desjardins caisse network. Ontario and British Columbia each account for approximately 14%.
Once credit unions are removed, Quebec’s share falls to 45.1%, Ontario’s rises to 40.1% and British Columbia accounts for 10%. Nova Scotia, Manitoba, New Brunswick, the Northwest Territories and Yukon remain lightly represented in the asset data.
The map shows that institutions exist across Canada. It doesn’t establish that every community has enough local financing capacity. NCFA’s review of rural financial access provides additional context on what happens when conventional financial infrastructure contracts in smaller and remote markets.
The detailed product analysis covers 202 products from 107 organizations. Private bonds and debentures account for 44.3% of the products studied, although they represent only 0.2% of reported product assets. Loan funds or equivalent products represent 20.9%, while private equity and venture capital funds account for 12.4%.
The CSI community bond campaign provides a current Canadian example. Individual and institutional investors supplied capital for community owned real estate while receiving defined interest rates and repayment terms.
Return expectations also distinguish these products from much of the conventional investment market. Among 91 products with disclosed return targets, 59.3% seek below market returns and 40.7% seek market rate returns. None of that sample targets an above market return.
Term information is available for 152 products. Nearly two thirds, or 62.5%, have terms of three to five years. This creates a practical consideration for investors because community outcomes and capital repayment often develop over several years.
Real estate is the leading investment focus. Of 192 products with disclosed objectives, 98, or 51%, support real estate activities such as affordable housing and green buildings. The most common United Nations Sustainable Development Goal alignment is SDG 11, Sustainable Cities and Communities, followed by themes connected to decent work, economic growth and reduced inequality.
Strengths, Limits And What Comes Next
The report gives Canada a common starting point for describing community finance. Its national map helps readers locate institutions, while its product data show how capital is structured, how long it may remain invested and what returns issuers target.
However, the figures shouldn’t be treated as a complete census of every institution or dollar. Asset information is incomplete at the individual organization level, particularly for Community Futures organizations and community land trusts. The 661 organizations added through the map also weren’t included in the detailed product analysis.
Several findings use smaller disclosure samples:
768 institutions in the full organizational dataset
752 institutions in the geographic count
202 products from 107 organizations in the product analysis
192 products with disclosed investment objectives
152 products with disclosed term lengths
91 products with disclosed return expectations
The provincial asset analysis combines Q4 2025 credit union data from the Canadian Credit Union Association and regulators with the core SVX collection. Quebec’s credit union figure includes an estimate for the Desjardins caisse network.
These limits don’t reduce the report’s value as a national baseline. They define how the figures should be used. Readers can compare institution types, product structures and geographic coverage, while avoiding claims that the dataset measures every community investment or proves the economic effect of the market.
A upcoming companion report, The Economic Case for Community Finance, is expected to examine job creation, enterprise growth, capital mobilization, government savings and potential returns from a national community finance strategy. That work should provide stronger evidence for evaluating community finance as an economic and public policy tool.
Talking Point: Canada now has a national view of the institutions involved in community finance. The next questions concern how much specialized capital reaches underserved communities, where financing gaps remain and which models can expand without losing their local purpose.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
July 27, 2026 | NCFA Companies On The Move | Digital Assets Blockchain And Tokenization, Wealth Investing And Trading, Competition And Market Structure
Coinbase Canada’s Everything Exchange Ambition
Parent Founded2012
Canada Launch2023
Parent FoundersBrian Armstrong and Fred Ehrsam
Company StageMarket Expansion
Coinbase is preparing to offer crypto derivatives to Canadian permitted clients, the first near term product in a much larger Canadian platform plan. In a Coinbase Canada interview, chief executive Eric Richmond said Coinbase Financial Markets had received an international exemption and expected the product to go live within weeks. He also wants Coinbase Canada to become a CIRO dealer in early 2027.
The derivatives aren’t live yet, and the first release isn’t intended for the general retail market. Stocks, ETFs and prediction markets are also part of Coinbase’s Canadian ambition, but no complete launch date has been announced. This profile separates what Canadians can use today from the approvals, products and customer adoption Coinbase still needs to turn a crypto account into a wider investment platform.
What Coinbase Canada Offers And What Comes Next
Canadians can already use Coinbase for spot crypto trading, Advanced trading tools, Interac e Transfer and electronic funds transfer deposits, PayPal purchases and eligible USDC rewards. The Coinbase Canada platform operates as a restricted dealer across every province and territory and as a registered FINTRAC money services business. Richmond said it lists more than 200 crypto assets.
The first expansion is narrower than the larger platform pitch. Coinbase Financial Markets expects to offer derivatives through an international exemption within weeks, beginning with permitted clients. The OSC permitted client definition includes institutions and certain financially sophisticated clients. It doesn’t include every Coinbase Canada customer.
Richmond’s next target is early 2027 membership in the Canadian Investment Regulatory Organization. The CIRO crypto dealer requirements cover capital, conduct, custody, operations and supervision. Approval would give Coinbase Canada a more permanent dealer base than its current restricted dealer registration, although it wouldn’t approve every future product automatically.
The ambition goes well beyond derivatives. Richmond has described a Canadian app spanning crypto, cash, stocks, ETFs and prediction markets. The Coinbase tokenized stock plan separately refers to customers outside the United States, but that wording doesn’t confirm Canadian availability. No complete Canadian launch date has been published for stocks, ETFs or prediction markets.
Why The Canadian Plan Needs Several Approvals
Coinbase can’t bring every global product into Canada under one registration. Its restricted dealer status supports the crypto trading business already operating here. Derivatives would come through a separate Coinbase affiliate and an exemption for permitted clients. Stocks and ETFs need securities dealer permissions, while prediction markets could face different requirements depending on the contracts and how they’re offered.
That puts regulation inside the product plan. Coinbase signed an enhanced preregistration undertaking in March 2023, launched its Canadian service with Interac access that August and completed its Coinbase Canada registration in April 2024. It became the first international exchange registered as a restricted dealer in Canada. It’s now adding products in the order its permissions allow instead of treating the global catalogue as one Canadian launch.
CIRO membership sits in the middle of that plan. Canada has been directing crypto trading platforms toward investment dealer registration and CIRO membership, while CIRO’s 2026 custody framework adds specific expectations for digital and tokenized assets. Membership wouldn’t approve every future product on its own. It would give Coinbase Canada a stronger dealer base from which to apply.
Founders and operators will recognize the build underneath the app. One customer interface may rely on several legal entities, registrations and product approvals. The front end can feel simple even when custody, execution, market access, capital and customer protection sit in separate operating lanes.
Why Coinbase Wants More Than Spot Trading
Coinbase Global’s first quarter figures explain why the company wants more ways to earn from each account. Coinbase Global spot volume fell 50% from a year earlier to US$202 billion, while monthly transacting users declined 15% to 8.2 million. Net revenue was US$1.3 billion, and the company recorded a US$394 million net loss. Those are global Coinbase figures, not Coinbase Canada results.
Other products are already helping to carry more of the business. Coinbase reported more than US$200 million in annualized retail derivatives revenue, while prediction markets reached US$100 million in annualized revenue during March. Its 2025 purchase of Deribit added a large crypto options business, and subscription and services produced US$583.5 million of first quarter net revenue. A customer using several products can remain valuable even when spot trading cools.
Canada is already a serious platform contest. Wealthsimple combines stocks, ETFs, crypto, cash accounts and other financial products inside one app. Robinhood entered Canada in June by buying WonderFi, giving it Bitbuy, Coinsquare, approximately 300,000 funded customers and regulated local infrastructure. Robinhood’s WonderFi purchase showed what that operating base was worth before the transaction closed. Kraken, Shakepay, NDAX and other registered platforms compete for crypto customers, while banks and established brokerages already control much of the Canadian investment relationship.
Coinbase brings a global exchange, custody, stablecoin and derivatives stack to that contest. Its challenge is local distribution. Canadians need a reason to transfer cash and assets, accept a new fee structure and keep several parts of their financial lives in the same account. Product breadth helps, but pricing, trust, tax reporting, execution quality and the limits attached to each registration will decide whether the app becomes a primary account or another trading venue.
What Makes Coinbase Canada Different In Summer 2026
Coinbase enters this Canadian stage with infrastructure a local exchange would struggle to replicate. Deribit adds options depth, Coinbase Financial Markets provides a regulated derivatives route, and USDC supports trading and rewards. The public parent also ended March with US$10.4 billion in cash, cash equivalents and marketable investments.
None of that makes Canadian adoption automatic. The derivatives release still has to launch, attract permitted clients and work well. CIRO membership remains a target, while stocks, ETFs, prediction markets and tokenized equities still need confirmed Canadian availability. Coinbase doesn’t publish Canadian customers, assets, revenue or market share, so public figures can’t yet show how large the local business has become.
The Company Intelligence Snapshot below follows the company, capital, product and regulatory decisions that brought Coinbase to this Canadian expansion stage.
NCFA Company Intelligence Snapshot
Coinbase Canada
The Canadian operating business, shown with the Coinbase Global history and infrastructure behind its expansion
Last updated Jul 27, 2026
Company At A Glance
Parent FoundedCoinbase was founded in 2012 by Brian Armstrong and Fred Ehrsam
Parent StatusCoinbase Global is listed on Nasdaq under COIN
Canadian EntityCoinbase Canada, Inc., incorporated in British Columbia
Canadian StatusRestricted dealer in all provinces and territories; FINTRAC MSB M22815925
Current Canada OfferSpot crypto, Advanced trading, Interac and EFT funding, PayPal purchases and eligible USDC rewards
Near Term PlanCrypto derivatives for Canadian permitted clients through Coinbase Financial Markets
Regulatory TargetCIRO dealer membership in early 2027, according to the Canadian chief executive
Global Q1 RevenueUS$1.3B net revenue; Coinbase does not disclose Canadian revenue
Global Platform AssetsUS$294B at Mar 31, 2026; Canadian assets are not disclosed
Global Users8.2M monthly transacting users in Q1 2026; Canadian users are not disclosed
Business ModelTransaction revenue plus subscription and services revenue from stablecoins, custody, staking, financing and memberships
Canadian CompetitionWealthsimple, Robinhood through WonderFi, Kraken, Shakepay, NDAX and established brokerages
Milestones
Select a milestone to follow how Coinbase built a public crypto platform and entered its next Canadian market stage
1Formation2012
2Public ListingApr 2021
3Canada LaunchAug 2023
4Restricted DealerApr 2024
5Everything ExchangeAug 2025 to Jun 2026
6Canada Phase TwoJun to Jul 2026
Milestone 1
Coinbase Starts With A Simple Bitcoin Account (2012)
Brian Armstrong and Fred Ehrsam founded Coinbase in 2012 to make it easier for people to buy, sell, store and transfer Bitcoin. The customer account became the base for a much larger crypto business.
Company
CoinbaseA US founded crypto platform
Stage
FormationA retail entry point into Bitcoin
Capital
Venture BackedPrivate funding supports exchange and custody infrastructure
Markets
United StatesCrypto access before international expansion
Customers
Retail UsersPeople seeking a simpler way to access Bitcoin
Competition
Early ExchangesTrust, payments and ease of use are central differentiators
Additional Company Data
Coinbase begins with a hosted customer account rather than a self custody only product
Trading, custody and fiat access develop around the same customer relationship
Regulatory engagement becomes a core operating requirement as the platform grows
The company later adds institutional and developer businesses alongside retail
Why This Milestone Matters
The original account created the distribution base Coinbase still uses. New products can be offered where customers already hold assets and complete identity checks, reducing the work required to introduce another financial service.
Milestone 2
Coinbase Lists On Nasdaq (Apr 2021)
Coinbase listed its Class A shares directly on Nasdaq under COIN in April 2021. Public reporting opened a clearer view into trading volume, platform assets, users, revenue and the company’s exposure to crypto market cycles.
Company
Coinbase GlobalA public holding company
Stage
Public ScaleExchange growth becomes visible through filings
Capital
Nasdaq listing under COINPublic equity replaces private financing as the main valuation reference
Markets
InternationalThe business expands across retail, institutions and developers
Customers
Several SegmentsConsumers, institutions, businesses and builders
Competition
Global PlatformsCrypto exchanges, custodians and financial apps
Additional Company Data
Transaction revenue remains sensitive to crypto prices and customer activity
Public filings separate transaction revenue from subscription and services
Platform assets and monthly transacting users become important operating measures
The public balance sheet supports acquisitions and regulatory investment
Why This Milestone Matters
The listing gave Coinbase capital and credibility, but it also made the volatility of spot trading visible every quarter. That pressure helps explain the continuing investment in stablecoins, derivatives, subscriptions and other products.
Milestone 3
Coinbase Builds A Canadian Funding Route (Aug 2023)
Coinbase formally launched its Canadian expansion with Interac e Transfers provided through Peoples Trust. More than half of customer deposits used Interac during the month before the announcement, showing why a local payment connection was essential.
Company
Coinbase CanadaA local operating entity within Coinbase Global
Stage
Market EntryCanadian product and payment localization
Capital
Parent FundedNo separate Canadian financing disclosed
Markets
CanadaA priority international market
Customers
Canadian Crypto UsersRetail access with local currency funding
Competition
Local ExchangesInterac reduces a practical advantage held by Canadian platforms
Additional Company Data
Interac e Transfer becomes available to all Canadian Coinbase users
Peoples Trust provides the local payment connection
Canada is also a technology employment base for the global company
Local user, asset and revenue figures are not separately disclosed
Why This Milestone Matters
Global brand recognition wasn’t enough on its own. Coinbase needed a familiar Canadian deposit and withdrawal method before it could compete effectively for the local customer account.
Milestone 4
Coinbase Canada Becomes A Restricted Dealer (Apr 2024)
Coinbase Canada completed restricted dealer registration across Canada in April 2024 after signing an enhanced preregistration undertaking the previous year. It became the first international crypto exchange registered under the Canadian framework.
Company
Coinbase CanadaA registered Canadian crypto platform
Stage
Regulated OperationNational restricted dealer status
Capital
Regulatory CapitalFinancial requirements attach to the registered entity
Markets
All Provinces And TerritoriesCanadian registration coverage
Customers
Approved Canadian UsersAccount limits and disclosures follow local terms
Competition
Registered PlatformsTrust and compliance become part of the sales proposition
Additional Company Data
Registration supports the approved spot crypto business
Coinbase Canada is also registered with FINTRAC as a money services business
Restricted dealer status is not approval for every Coinbase Global product
The next regulatory objective is investment dealer registration and CIRO membership
Why This Milestone Matters
The registration kept Coinbase in Canada as several global exchanges left. It provided a compliant operating base, although the restricted category still limits how far the product range can expand.
Milestone 5
Coinbase Builds The Everything Exchange (Aug 2025 to Jun 2026)
Coinbase added Deribit, equities, prediction markets and more derivatives as it developed the Everything Exchange strategy. The goal is to let customers trade more assets and use more financial services where they already hold crypto and cash.
Company
Coinbase GlobalA multi product financial platform
Stage
Platform ExpansionBeyond spot crypto trading
Capital
US$10.4BCash, equivalents and marketable investments at Mar 31, 2026
Markets
Crypto And Traditional AssetsProducts vary by jurisdiction
Customers
8.2M MTUsGlobal monthly transacting users in Q1 2026
Competition
Financial Super AppsBrokerages, exchanges and consumer finance platforms
Additional Company Data
Deribit adds global crypto options liquidity and institutional activity
Retail derivatives passed US$200M in annualized revenue in Q1 2026
Prediction markets reached US$100M in annualized revenue in March 2026
Tokenized stocks were announced for non US customers without confirmed Canadian timing
Why This Milestone Matters
Coinbase is reducing its dependence on spot trading by selling more products through the same account. The global infrastructure gives the Canadian business options, but each product still needs a local route to market.
Milestone 6
Coinbase Canada Starts Its Next Product Stage (Jun to Jul 2026)
By July 2026, Eric Richmond was leading Coinbase Canada. In interviews that month, he set out the next operating priorities. Coinbase planned to launch derivatives for permitted clients, pursue CIRO membership and work toward a Canadian version of the Everything Exchange.
Company
Coinbase CanadaA local business using global product infrastructure
Stage
Market ExpansionFrom spot crypto toward more asset classes
Permitted Clients FirstThe initial derivatives release is not general retail access
Competition
Platform ContestWealthsimple and Robinhood already span several financial categories
Additional Company Data
Confirm the derivatives launch date, contracts, pricing and legal entity
Track permitted client adoption and any later retail availability
Watch the CIRO application and conditions attached to membership
Separate confirmed Canadian products from the global Everything Exchange catalogue
Why This Milestone Matters
Coinbase has named the Canadian destination and the first product expected to get it there. The next test is execution. Readers can watch for live products, approved registrations, customer use and Canadian results that show whether the strategy is gaining ground.
Related NCFA Intelligence
Four useful ways to place Coinbase Canada’s plan inside the market it’s entering.
A competing model for distributing tokenized equities through exchanges, wallets and established market infrastructure.
Frequently Asked Questions About Coinbase Canada
Is Coinbase regulated in Canada?
Yes. Coinbase Canada, Inc. is registered as a restricted dealer across Canada and as a money services business with FINTRAC. Restricted dealer registration is not the same as CIRO dealer membership, which the Canadian chief executive says the company is targeting for early 2027.
Is Coinbase launching crypto derivatives in Canada?
Coinbase Canada chief executive Eric Richmond said in July 2026 that Coinbase Financial Markets expected to offer derivatives to Canadian permitted clients within weeks. The product had not yet launched when this profile was verified on July 27.
Who will be able to use the Canadian derivatives product?
The first release is intended for permitted clients, a Canadian regulatory category that includes institutions and certain financially sophisticated clients. Coinbase has not announced general retail availability.
Can Canadians trade stocks and ETFs on Coinbase?
Coinbase has described stocks and ETFs as part of its Canadian Everything Exchange ambition, but it has not announced a complete Canadian launch date. A global Coinbase announcement for non US tokenized stocks should not be treated as confirmation that the product is approved or available in Canada.
Will Coinbase offer prediction markets in Canada?
Prediction markets are part of the stated Canadian platform plan, but Coinbase has not announced a Canadian launch date or the legal and regulatory structure it would use. Availability would depend on the contracts offered and Canadian approvals.
What does Coinbase currently offer Canadians?
The current Canadian platform offers spot crypto trading, Advanced trading tools, Interac e Transfer and electronic funds transfer funding, PayPal purchases and eligible USDC rewards. Product availability and reward rates can change.
How many Canadian customers does Coinbase have?
Coinbase does not publish a current Canadian customer count. Its public filings report global users, trading volume, assets and revenue, but those figures should not be presented as Coinbase Canada results.
How does Coinbase make money?
Coinbase Global earns transaction revenue from trading and subscription and services revenue from products including stablecoins, custody, staking, financing and memberships. It does not disclose the revenue or product mix of Coinbase Canada separately.
Who competes with Coinbase in Canada?
Its direct crypto competitors include Robinhood through Bitbuy and Coinsquare, Kraken, Shakepay, NDAX and other registered platforms. Its wider platform ambition also places it against Wealthsimple, established brokerages and financial institutions that already offer Canadian investment accounts.
Is Coinbase Canada part of Coinbase Global?
Yes. Coinbase Canada, Inc. is the Canadian operating entity within Coinbase Global. Coinbase Global is the Nasdaq listed parent. Parent company financial results and global user figures are not the same as Canadian results.
Coinbase Global figures are identified separately from Coinbase Canada information. Planned products, launch timing and regulatory targets may change. This content is provided for informational purposes only and does not constitute investment, financial or legal advice.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
Ask most fintech watchers what crowdfunding funds and you'll hear about startups, real estate, or the odd gadget. Rarely do card games come up first — yet tabletop projects have quietly become one of the strongest categories on reward-based platforms, and the numbers back that up. For anyone tracking alternative finance in Canada, it's a category worth a second look.
Why Games Became a Crowdfunding Magnet
Reward-based crowdfunding was built for exactly this kind of project: a creator with a finished prototype, a passionate niche audience, and a product people can pre-order rather than just invest in blindly. Card and board games fit that mould almost perfectly. Backers aren't betting on a business plan — they're paying upfront for a physical thing they'll actually get to play.
The 2024 Numbers Tell the Story
Kickstarter's own 2024 year-in-review called it the biggest year for games in the platform's fifteen-year history, with $270 million pledged across games projects and 83% of that money going specifically to tabletop titles. That's not a niche curiosity anymore — it's a real slice of the alternative finance economy, funded entirely by individual backers rather than venture capital.
Canadians Are Part of the Trend
Canadian creators have been active participants in this shift for years, not just recent arrivals. Research on nearly 10,000 Canadian Kickstarter campaigns found that roughly a third succeeded — a reminder that reward-based crowdfunding, while accessible, still rewards a clear pitch and a product people genuinely want.
What This Means for Backers and Creators
For creators, the appeal is obvious: no equity given up, direct validation from a real audience, and often enough working capital to cover a full print run. For backers, it's a chance to shape what gets made and get a game months before retail — assuming the campaign delivers, which isn't guaranteed.
Picking Projects Worth Backing
Not every campaign is worth a pledge. Look for creators with a track record, a playable prototype (not just concept art), and a realistic production timeline. Comment sections and creator updates on past projects are usually more honest than the campaign page itself.
Where to Play Once the Cards Arrive
Whether or not you're backing the next big campaign, there's no shortage of ways to enjoy the category right now. Sites built around fun card games are a good starting point if you want to try something new without waiting for a shipping date.
Frequently Asked Questions
Is crowdfunding a reliable way to fund a game?
It can be, but it favours creators who already have a working prototype and an existing audience. All-or-nothing platforms like Kickstarter mean the project only gets funded — and the creator only gets paid — if the goal is hit.
Why are tabletop and card games so popular on Kickstarter specifically?
They combine a tangible reward, a built-in enthusiast community, and relatively low production complexity compared to, say, hardware or video games, which makes them easier to pitch and deliver.
Do backers get any ownership in the game they fund?
No. Reward-based crowdfunding gives backers the product itself, not equity or royalties — that distinguishes it from equity crowdfunding, which is regulated differently in Canada.
What's the biggest risk of backing a card game campaign?
Delayed or cancelled delivery. Even well-intentioned creators can underestimate manufacturing and shipping timelines, so backing is closer to a pre-order with extra risk than a guaranteed purchase.
How can Canadian creators improve their odds of a successful campaign?
Building an audience before launch, running a modest and achievable funding goal, and having a genuinely playtested prototype all correlate strongly with success, based on patterns across thousands of past Canadian campaigns.
The Bottom Line
Card games aren't a footnote in the crowdfunding world — they're one of its steadiest performers, and Canadian creators have a real track record within that space. For anyone watching where alternative finance is headed next, it's a category that keeps proving there's an audience willing to fund what they genuinely want to play.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
We're opening up more and more APIs to partners, fintech services, and client applications. The only question is whether we're confident these same APIs aren't opening up new paths for attackers.
Open Banking Is Changing Not Just How Data Moves, But the Trust Model Itself
Just a few years ago, a bank mostly dealt with its own systems. A customer would log into the app, check their balance, make a transfer. The whole journey stayed inside the perimeter of a single organization.
Today, one customer might simultaneously use a mobile banking app, a budgeting service, an accounting platform, a payment provider, and an AI assistant that analyzes their spending. All of these services exchange data through APIs - interfaces that let different systems talk to each other according to a set of established rules.
Open Banking isn't just a regulatory requirement or a new integration channel - it's a shift in the trust model itself. A bank used to be responsible for security within its own infrastructure. Now it hands off part of its data to dozens of external services, and those services, in turn, rely on the bank. The more participants in the ecosystem, the more points there are where trust is either reaffirmed or cracked, every single day.
Why APIs Have Become the New Attack Perimeter
Attackers are less and less interested in finding a weak spot inside any one bank. Today, hackers target the interaction between systems itself. The longer the chain - bank, fintech, payment hub, partner app - the more places there are for something to go wrong.
Common examples include:
authorization flaws, where a user of one app can reach another app's operations;
excessive permissions granted "just in case";
access controls that check whether someone is logged in, but not whether the data actually belongs to them;
risky third-party integrations, where a partner's weakness becomes an entry point into the bank's system;
token leaks through logs or unsecured channels;
vulnerable business logic that can be bypassed in ways no one planned for.
An API can perform flawlessly on the functional side - fast, stable, no errors in the logs - and still carry a critical vulnerability. Functional correctness and cybersecurity don't always go together.
Why Standard Checks Aren't Enough Anymore
Banks and fintech companies generally don't neglect API security. They go through certifications, run automated scans, do code reviews and QA. But none of these tools answer the one question that matters most: can this specific API's logic be bypassed in a way its developer never anticipated? Scanning catches known vulnerability patterns; code review and QA confirm the code does what it was built to do. Neither one thinks like an attacker who isn't hunting for a bug in the code, but for a logical gap in how the API interacts with other systems.
That's why most attacks on financial APIs today aren't about technical mistakes - they're about logic: the sequence of actions, the boundaries of authority, the trust placed in data coming from the client. It's also why modern Cybersecurity Solutions for Fintech increasingly go beyond formal compliance with standards, testing real-world abuse scenarios at the points where multiple systems meet.
What to Check in Your Open Banking API
Here's a short checklist for reviewing every external API in your ecosystem:
Can a user of one account reach another account's data?
Do all authorization levels - for the client, the partner, and internal processes - work correctly and consistently?
Can an expired or revoked token still be used?
Are all endpoints equally protected, including the ones not visible in the main interface?
Can business restrictions - limits, action sequencing, operation statuses - be bypassed?
Is the number of requests per client or integration rate-limited over time?
Are actions that deviate from normal behavior actually logged?
If you don't have a confident answer to any of these, that's reason enough to look closer.
How to Check What Automated Tools Can't See
It's worth telling apart three things that often get lumped together. Vulnerability scanning looks for known vulnerabilities by signature, catching familiar vulnerability classes, common misconfigurations, and known dangerous patterns. Automated testing checks whether the code performs its intended functions correctly. Separate from both is API Penetration Testing (https://datami.ee/services/pentest/api-penetration-testing/) - manual testing in which a specialist plays the role of a real attacker: combining requests, tweaking parameters, hunting for unusual sequences of actions that a scanner, in most cases, won't flag as anomalous, because each individual request looks legitimate on its own.
It's also best if this kind of testing is handled by an external team. In-house specialists tend to know their own API inside and out - and that's precisely what makes it hard for them to spot an unconventional abuse scenario, since day-to-day work with a system's logic doesn't train you to look at it through the eyes of someone deliberately trying to break it. External specialists bring experience from other architectures and payment integrations, so they're more likely to catch the gaps a team had written off as unimportant.
Open Banking Only Works When Trust Works
A bank can offer the most convenient digital service and the best partner API on the market. But if even one partner or customer stops trusting the security of the data exchange, the benefits of Open Banking vanish almost instantly. Trust here isn't a bonus feature - it's the baseline condition, and without it the whole structure loses its meaning.
That's why investing in API protection in the financial sector isn't just about regulatory compliance - it's about sustaining trust across the whole ecosystem: between bank and fintech, fintech and customer, and customer and every new service they let into their data.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
Three exchange closures announced or underway inside one month deserve more than a roundup. They raise a harder question around the 2026 bear market. Is it breaking the centralized exchange model, or exposing platforms that had already lost the trading activity, regulatory access or financial capacity needed to keep going?
The public record doesn't support one cause for all three.
AscendEX tied its closure to the European Union's Markets in Crypto Assets Regulation, along with financial and operating pressures
BitMart cited its operating conditions, the market environment and future strategy without naming a specific financial or regulatory event
BitMEX said its board acted after a strategic review and separately stated that assets exceeded liabilities. Their timing is shared, but their disclosed circumstances aren't
Lower Volume Hits Unevenly
The bear market is real, and it strikes at the first line of exchange economics. Trading fees rise and fall with activity. CoinGecko found that spot volume across the ten largest centralized exchanges fell 39.1% in the first quarter of 2026. Its second quarter report recorded a further 27.9% decline to US$1.95 trillion. Perpetual futures held up better, although volume still fell 10% from the prior quarter.
The numbers explain the pressure. They don't explain which exchange closes. The declines among leading spot venues ranged from 5% to 56% in the second quarter, while Binance increased its share to 38.7%. A weak market can therefore strengthen the largest venue at the same time it makes a smaller one uneconomic.
BitMEX is the clearest example. It created the perpetual swap product that became central to crypto trading, yet product invention didn't preserve its liquidity. Kaiko data reported by Reuters put BitMEX below 0.01% market share with roughly US$400,000 in daily volume when the closure was announced. Meanwhile, the ten largest centralized perpetual exchanges still processed US$12.7 trillion in the second quarter. The market BitMEX helped create remained huge, while its position inside it had collapsed.
Liquidity has its own impact. Traders prefer deeper order books, tighter spreads and reliable execution. Market makers follow trading activity, then their capital improves execution and attracts more traders. Once that cycle runs in reverse, adding another token, staking programme or interface may not repair the core business.
Licensing And Onchain Trading Tighten The Squeeze
Regulation is decisive when it controls market access. Under the MiCA transition rule, a crypto asset service provider that wasn't authorized by the applicable deadline had to stop serving the market until it received authorization. That deadline arrived on July 1, the same day AscendEX ceased operations.
Authorization also carries an operating load. MiCA requires prudential safeguards, governance, internal controls, business continuity planning and security documentation. ESMA's current custody review reaches into key storage, transaction controls, incident response and service provider dependencies. The cost continues after authorization because firms need people, systems and capital while trading revenue can fall quickly.
Regulation is therefore a filter and one part of the explanation. It directly affected AscendEX. Neither BitMEX nor BitMart identified licensing as the cause of its closure. Tighter rules can force a decision or raise the cost of staying open, while weak economics determine how much room a platform has to absorb that cost. NCFA's comparison of MiCA and UK rules shows why regulation can favour companies with stronger governance and compliance infrastructure.
Onchain exchanges are also taking a larger piece of derivatives trading. CoinGecko's perpetuals data shows that the top decentralized venues averaged US$611.6 billion in monthly volume during the first four months of 2026, up from US$531.7 billion in 2025. Their share of open interest reached 13.5% by the end of April, compared with 3.6% at the start of 2025.
Still, centralized exchanges held 86.5% of open interest. Onchain competition is meaningful, especially for active derivatives traders, but it hasn't replaced the centralized model. It has given traders another place to go just as a falling market makes every lost account more expensive.
What Founders, Investors And Canadian Platforms Should Watch
The closing notices reveal almost as much through their differences as their similarities.
AscendEX paused automated withdrawals and said it couldn't assure customers when requests would be completed or how much would be returned
BitMart set a phased timetable and kept withdrawals open, but its notice didn't disclose revenue, reserves, liabilities or the specific condition that made closure necessary
BitMEX said assets exceeded liabilities and kept withdrawals available, while warning that thin contracts could be settled early
Customers need clear answers about whether their assets are held separately, whether reserves cover liabilities, how open positions will be priced, how quickly withdrawals will be processed and which legal entity is responsible for returning their money.
For founders, exchange businesses needs deep liquidity, active traders who keep coming back, trusted custody and permission to operate in every market it serves. New products and jurisdictions can bring in more revenue, but they also add capital, compliance, security and support costs. Those costs don't disappear when trading activity goes somewhere else.
Investors should watch market share, order book depth, active trader retention, withdrawal performance, reserve and liability reporting, market maker concentration and the status of key licences. Historical user totals can hide a much weaker current business. BitMEX's decline from an industry pioneer to less than 0.01% market share shows just how far activity can fall before an established name finally exits.
Canada uses a different regulatory framework, but the same operating questions apply. Canadian platform rules cover registration, custody and delivery requirements, while Kraken's registration shows the conditions attached to serving Canadian customers. Registration can strengthen oversight and make the rules clearer. It can't remove market, custody or company risk.
So the answer goes beyond “bear market plus regulatory pressure.” Lower prices and weaker trading cut fee revenue. Licensing determines where an exchange can legally operate. Liquidity keeps concentrating around fewer large venues, while onchain platforms compete for active traders. Custody, compliance and security remain expensive throughout. If an exchange loses trading activity, market access or customer confidence, it can run out of room even when the global crypto market remains very large.
Talking Point
When trading volume falls, which exchange numbers tell you whether a platform is temporarily quieter or losing the liquidity, trust and regulatory access it needs to remain viable?
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
July 27, 2026 | NCFA Market Activity | Capital Markets And Market Infrastructure, Wealth Investing And Trading, Banking And Credit
Ontario Teachers’ Adds Platform Economics To CLO Equity
On July 27, 2026, Ontario Teachers’ and M&G agreed to establish a European CLO joint venture. Ontario Teachers’ Pension Plan has agreed to provide up to €200 million for equity investments in future M&G Margay collateralized loan obligation issuances. It will also participate in the long term economics of M&G’s European CLO business.
The second part makes this more interesting than a pension fund buying CLO securities for its portfolio. Ontario Teachers’ is tying capital to future M&G issuances and participating in the long term economics of the platform those transactions can grow. The release doesn’t disclose an ownership stake in M&G itself, the economic formula, governance rights, return targets or the term of the joint venture.
Capital will be deployed transaction by transaction under an agreed investment framework. That gives Ontario Teachers’ room to assess each issuance instead of transferring the entire commitment at closing. For M&G, it provides an aligned source of equity capital that can help the Margay programme issue more CLOs when market conditions and available loans support them.
Why The Equity Tranche Can Pay More And Lose First
A CLO buys a diversified pool of corporate loans and finances that pool by issuing layers of debt and equity. M&G says Margay invests in European broadly syndicated loans. Those are loans arranged for larger corporate borrowers and distributed across several institutional lenders.
Cash collected from the loans pays the senior CLO tranches first. The equity tranche sits at the bottom and receives what remains after interest, expenses and required payments have been made. The European Central Bank’s CLO analysis explains the tradeoff clearly where equity has the highest potential return, but it's paid last and absorbs losses first when loans default.
Ontario Teachers’ is therefore accepting more than ordinary bond risk. Returns can benefit when loan income exceeds the cost of the CLO’s debt and credit losses remain contained. They can fall when defaults rise, recoveries disappoint, financing becomes expensive or structural tests redirect cash away from equity investors.
The pension plan says European CLO equity complements and diversifies its existing programme. Europe also gives it a different pool of borrowers, managers and issuance periods. What hasn’t been disclosed is the expected return, how much of the €200 million may be used in each Margay transaction or exactly how the platform economics will be divided.
Committed Equity Capital Can Help A CLO Manager Issue At Scale
M&G launched Margay in 2023 and reports €1.6 billion currently in issue. The programme sits inside a €10 billion loan platform, a €27 billion structured and private credit business and M&G’s €93 billion Private Markets business. M&G’s Life business has also invested more than £1 billion in structured credit strategies over time.
Equity capital is essential because every new CLO needs investors willing to take the most junior position. A dependable partner can make future issuance easier to plan, although every transaction still depends on loan availability, funding costs and investor demand for the more senior tranches.
The market is active enough however to support that ambition. European CLO issuance reached €15.9 billion in the first quarter of 2026, up from €14 billion in the previous quarter. CLOs led all placed European securitisation categories during the period.
Other managers are securing similar pools of committed equity:
Sagard | HalseyPoint launched a US$250 million target CLO equity fund for future issuances after Sagard acquired a 40% interest in the manager. Sagard, affiliates, insurers and other institutional investors had committed US$92.5 million at launch.
Oak Hill Advisors closed a US$1.1 billion CLO equity fund in September 2025 with commitments from pension funds, sovereign wealth funds and other institutions. OHA said the capital could support about US$10 billion of CLO deployment.
Columbia Threadneedle entered a multiyear agreement with a Jefferies led investor consortium to supply equity for several CLOs. The structure gave the manager repeat issuance capital rather than funding for only one transaction.
These deals are structured differently, but the managers face the same challenge in that they need investors willing to fund the riskiest part of each new CLO. A strong credit team and a supply of suitable loans aren’t enough without that equity capital. Ontario Teachers is also going a step further. Along with investing in future CLO equity, it will participate in the long term economics of M&G’s European CLO business.
The Opportunity Comes With A Harder Risk Question
If Margay issues regularly and its loan pools perform, Ontario Teachers’ could earn from both its equity positions and its negotiated participation in the platform. M&G gains a long term institutional partner without receiving the full commitment before suitable transactions are ready.
A slower issuance market may leave part of the commitment unused. Competition for loans can make assets more expensive and reduce the difference between loan income and CLO funding costs. Higher defaults or weaker recoveries reach the equity tranche first. The public announcement also leaves outsiders unable to compare the value of the platform participation with the risk Ontario Teachers’ is taking.
This transaction is aligned with a larger expansion in non bank credit, but the categories need care. Margay’s disclosed collateral consists of broadly syndicated loans, while private credit normally refers to loans negotiated privately between non bank lenders and borrowers. They can share institutional investors and leveraged corporate borrowers without being the same market.
The Bank of Canada recently issued a warning about non bank debt risk. The Bank says Canadian pension fund and insurer exposures to global private credit appear manageable, while limited transparency and growing connections across financial structures still warrant monitoring. The Ontario Teachers’ transaction isn’t evidence of distress. It does show why the ownership, funding and risk links around credit managers are becoming more important to understand.
The commercial trend is already visible across private market platforms. Large investors want more than passive fund exposure, while managers want dependable capital that can support repeat origination or issuance. The open question is whether the added platform economics compensate investors for taking concentrated, junior risk over several market cycles.
Talking Point
Will more pension funds negotiate access to both CLO equity and CLO platform economics, or will first loss risk and tighter returns keep most institutions in individual securities and diversified funds?
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
