Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Blockchain, Crypto, Digital Assets, Tokens, CBDCs, Stablecoins, Metaverse, NFTs
SEC Rescinds SAB 121, Allowing Banks to Custody Bitcoin
Crypto Regulation | Jan 24, 2025
Bye Bye SAB 21 -- Hello SAB 122, Banks Can Now Securely Custody Cryptocurrency Assets
On January 23, 2025, the U.S. Securities and Exchange Commission (SEC) cancelled the controversial Staff Accounting Bulletin No. 121 (SAB 121) and replaced it with an updated SAB 122. This move addresses the concerns about the accounting treatment of digital assets, opening the door and making it easier for banks, fintech companies, and crypto custodians to legally provide cryptocurrency custody services.
Key Insights
- The problem with SAB 21 is that it required all financial institutions such as banks, fintech firms, and crypto custodians to record customer crypto assets as liabilities on their balance sheets, inflating the financial and operating risks (of doing business with crypto). This accounting treatment discouraged banks from offering custody services for crypto because it inflated their liabilities making their financial positions look risky, impacting regulatory compliance.
- Now with the new SAB 122, financial institutions can now report their services more accurately without inflating liabilities by following well known accounting Financial Accounting Standards Board (FASB) rules in the U.S. or similar international standard.
See: Trump Signs New Order for Crypto Rules, Bans CBDCs, Eyes Asset Reserve
- The updated bulletin reminds entities to maintain clear and detailed disclosures that allow investors to understand obligations related to the company's responsibilities to safeguard crypto assets, such as detailing operations, potential risks, and management practices.
- The rescission is to be applied retrospectively, starting from December 15, 2024 with options for early adoption.
SEC Commissioner Hester Peirce Reaction on X:
"Bye, bye SAB 121! It’s not been fun" -
Why it Matters
The rescission of SAB 121 further highlights the regulatory pivot currently evolving on digital assets and their imminent role in mainstream finance and broader financial landscape. It could attract billions of dollars in institutional investments into crypto markets, further bridging the gap between traditional versus digital finance while boosting innovation and the credibility of cryptocurrencies.
See: SEC Launches Crypto 2.0 Task Force Led by ‘Crypto Mom’
This development could set a precedent for other jurisdictions to follow. As regulatory clarity improves, crypto market potential as a core piece of the global financial ecosystem grows stronger.
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
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Trump Signs New Order for Crypto Rules, Bans CBDCs, Eyes Asset Reserve
Crypto Regulation | Jan 23, 2025
Image of the White House Executive Order
Trump Signs Executive Order to Boost Crypto Innovation, Ban CBDCs, and Explore a U.S. Digital Asset Reserve
O January 23, 2025, President Donald Trump made good on his promise to the crypto sector by signing a new executive order titled "Strengthening American Leadership in Digital Financial Technology" aimed at boosting innovation, providing regulatory clarity, banning the establishment of Central Bank Digital Currencies *CBDCs) and protecting financial freedom, and exploring a national digital asset 'stockpile' (read: reserve).
Key Provisions of the Executive Order
- The executive order highlights the importance of blockchain and digital assets in driving U.S. innovation and economic growth, and guarantees protections for individuals and companies to access and use blockchain networks for legal purposes including self custody of digital assets.
- The order restricts any federal agencies from creating or promoting CBDCs, and outlines concerns around privacy, financial stability, and U.S. sovereignty.
- The newly formed Presidential Working Group on Digital Asset Markets to evaluate the potential of creating a national digital asset reserve that could also include cryptocurrencies that were lawfully seized by federal agencies.
- The order ensures that all law abiding individuals and businesses have fair access to banking services to address the long standing concern that regulators are trying to keep crypto out of the banking industry.
- Trump's executive order revokes Biden's previous executive order 14067 on responsible development of digital assets, and Treasury Department frameworks, signalling a significant policy shift.
- The order promotes lawful, U.S. dollar-backed stablecoins to strengthen U.S. dollar sovereignty and support their global growth as a secure digital asset.
New Presidential Working Group on Digital Asset Markets
A key component of the order is the establishment of a Presidential Working Group on Digital Asset Markets which includes leaders from the Treasury, Justice Department, Commerce, and other major federal agencies. Within 180 days, the group will propose a federal framework to regulate digital assets focusing on structure, consumer protection, and risk management.
See: SEC Launches Crypto 2.0 Task Force Led by ‘Crypto Mom’
Note the Presidential Working Group is different than the SEC's Crypto 2.0 task force led by Commissioner Hester Peirce who is tasked with establishing a clear regulatory framework for crypto, addressing issues like market integrity and investor protection within the scope of the SEC.
Industry Reactions
A mix of enthusiasm and skepticism.
Katherine Kirkpatrick Bos, General Counsel at StarkWare told MarketWatch:
“has been a very positive stretch. I honestly don’t even know how to process this much good news for crypto at once.”
David Sacks, Chair of the newly formed Presidential Working Group on Digital Asset Markets said at an industry event:
“The war on crypto is over. This is the beginning of America reclaiming its position as the world’s innovation leader.”
See: U.S. Bets Big On Crypto and What It Means for Canada
Nathan McCauley, CEO and co-founder of crypto company Anchorage Digital on Reuters:
"Today’s crypto executive order marks a sea change in U.S. digital asset policy. By taking a whole-of-government approach to crypto, the Administration is making a significant first step toward writing clear, consistent rules of the road."
Some critics have raised ethical concerns over the launch and promotion of Trump's meme coin $Trump, due to conflicts of interest. They also have questions about the long term implications and market oversight.
Closing Outlook
This executive order positions the U.S. as a serious player in the global crypto space. By banning CBDCs, protecting industry access to banking, and proposing a strategic Bitcoin reserve, President Donald Trump and his administration are making a bold and clear statement about their vision for the future of finance.
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
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SEC Launches Crypto 2.0 Task Force Led by ‘Crypto Mom’
Regulation | Jan 22, 2025
Image: Freepik
Peirce and Uyeda to Develop Regulatory Framework for Digital Assets in the United States
Mark Uyeda, the acting Chairman at the U.S. Securities and Exchange Commission (SEC) published a press release today announcing the establishment of a Crypto 2.0 Task Force to develop a comprehensive regulatory framework for digital assets to be led by Commissioner Hester Peirce otherwise known as 'Crypto Mom' for her well documented pro-innovation views. Other members of the task force include Richard Gabbert and Taylor Asher, to serve as Chief of Staff and Policy Advisor for the 2.0 task force, respectively.
Why Setup the Crypto 2.0 Task Force
The Crypto 2.0 Task Force is in response to the 'head scratching' issues with the SEC's regulatory approach to digital assets which has largely relied on regulating via enforcement. The lack of regulatory clarity has stifled innovation, causing innovators huge delays, legal risks and in many cases project abandonment. The unclear regulatory landscape also created an environment conducive to fraud, undermining investor confidence and market integrity.
See: SEC Files Appeal Brief as XRP Hits Record High
In the release, the SEC acknowledged that 'The SEC can do better" at crafting a framework that balances innovation while protecting investors. Yes, it is possible, and so with the establishment of the Crypto 2.0 Task Force, the SEC gets another kick at the can to add clarity on who must register and 'practical solutions' for companies looking to register. Further, the Task Force will work with Congress and coordinate with the various federal agencies including the Commodity Futures Trading Commission, and states along with global counterparts to implement a structured and transparent regulatory framework.
Task Force Perspectives
Commissioner Hester Peirce
Commissioner Peirce (often referred to as "Crypto Mom") has consistently advocated for clear and practical crypto regulations, and emphasized that enforcement actions alone are insufficient for providing regulatory clarity. Previously, Peirce also highlighted the importance of inclusive decision making within the SEC and criticized the act of issuing significant regulatory measures without comprehensive industry consultation, saying "Rules of such broad effect should be set by the full Commission, not by staff answering only to the Chairman."
See: Fidelity Report Insights on Digital Assets in 2025
Commissioner Peirce in a 2021 interview said:
"We want to provide people clear guidelines ahead of time and then they can figure out how they can do something so that it is legal."
Acting Chairman Mark T. Uyeda's
Previously, the Acting Chairman Mark T. Uyeda has shown commitment to fostering innovation and expanding access to private markets. Uyeda, in collaboration with Peirce, opposed restrictive wealth thresholds for the definition of accredited investors, and instead advocated for criteria that focused on knowledge and risk awareness over financial benchmarks.
Richard Gabbert, Chief of Staff
Richard Gabbert serves as the Crypto 2.0 Task Force's Chief of Staff. Previously, he was Counsel to Commissioner Hester Peirce, advising on various regulatory matters including over-the-counter derivatives market reforms mandated by the Dodd-Frank Act. Before joining the Commissioner's office, Gabbert was a Senior Special Counsel in the SEC's Office of Derivatives Policy within the Division of Trading and Markets, where he led rule making teams addressing the cross-border regulation of derivatives markets. While his direct statements on cryptocurrencies are not widely publicized, his background suggests a focus on clear regulatory guidelines and market integrity.
Taylor Asher, Chief Policy Advisor
Taylor Asher is the Chief Policy Advisor for the task force. Prior to this role, Asher served as a Confidential Assistant and Policy Advisor to Commissioner Mark T. Uyeda. Although public statements from Asher about crypto are limited, his role highlights involvement in shaping policy decisions related to digital assets.
Outlook and Next Steps
The Task Force anticipates hosting various expert roundtables in the future but wants everyone to know that they welcome public input, and in the meantime send feedback to: Crypto@sec.gov.
See: Crypto Mom & Uyeda Defend Flyfish Club NFTs as Utilities
With Commissioner Perice's leadership and contributions from seasoned experts, Richard Gabbert and Taylor Asher, the Crypto 2.0 Task Force has the potential to create a more inclusive, transparent, and dynamic crypto ecosystem in the U.S.. One that balances innovation and investor protection by prioritizing clear guidelines and stakeholder collaboration.
Commissioner Peirce:
“This undertaking will take time, patience, and much hard work. It will succeed only if the Task Force has input from a wide range of investors, industry participants, academics, and other interested parties. We look forward to working hand-in-hand with the public to foster a regulatory environment that protects investors, facilitates capital formation, fosters market integrity, and supports innovation."
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
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BRI Launches Free GenAI and Blockchain Course
Free Courses | Jan 21, 2025
Image courtesy of AI
Unlock the Future with Generative AI and Blockchain Free Course
The Blockchain Research Institute (BRI) in collaboration with the prestigious INSEAD Business School has launched an exciting new course on Generative AI and Blockchain which is free to take and available now on Coursera.
Generative AI and Blockchain are two of the most powerful technologies of our time. Generative AI is designed to create, predict, and solve problems, while blockchain provides transparency, trust, and security. Combined they are an unstoppable dynamic duo, capable of addressing complex challenges such as:
- Decentralized data sharing
- Ensuring the integrity of AI-generated content
- Automating trust in systems and transactions
See: FSB’s Warnings of Hidden Stakes of AI in Finance
With over 135,000 learners already enrolled in BRI’s award-winning courses, this latest offering continues the tradition of delivering high impact, top rated, learning experiences.
What You’ll Learn Across 4 Modules
Module 1: The Evolution to Web3 and the Intersection of AI and Blockchain
This module dives into Web3 (next phase of the Internet) designed to prioritize decentralization, transparency, and user control. You'll uncover how the Web3-AI ecosystem is built with layers like decentralized infrastructure, data networks, AI models, smart contracts, and real world applications. You'll explore how AI and blockchain come together in Web3, showcasing both the exciting opportunities and the challenges they present.
Module 2: How Blockchain Enhances Generative AI and Vice Versa
Lear how blockchain enhances Generative AI by improving transparency, security, and reliability through features like trusted data integrity, federated learning, and better decision making.
See: Musk Says Human Data for AI Training is Depleted
At the same time, explore how Generative AI takes blockchain to the next level by automating smart contracts, customizing decentralized applications, and creating unique digital assets. This module also brings these concepts to life with real world examples from industries such as gaming, media, real estate, and supply chain management.
Module 3: Expanding Beyond Generative AI to Agentic AI and Decentralized Governance
This module looks at how AI is evolving beyond Generative AI, focusing on "Agentic AI", a type of AI that can work independently to achieve goals with minimal human input. You’ll learn how blockchain can make these systems more secure and trustworthy. Other topics include how AI helps manage decentralized autonomous organizations (DAOs), important ethical questions to consider, and how AI-driven tokenomics is changing the way blockchain handles economics and incentives.
Module 4: Transforming Industries with AI and Blockchain
See how the combination of AI and blockchain is transforming entire industries. In healthcare, learn how these technologies are advancing personalized medicine and speeding up drug development. Explore how they support content authenticity and fair pay for creators in arts and media. Discover how they make global commerce smoother, from cross-border payments to better ESG transparency. Finally, you'll dive into the energy sector, where AI and blockchain are driving innovation in decentralized energy markets and improving grid efficiency.
See: Investing in the Future of AI and Blockchain
The course is designed for learners from all backgrounds so it's accessible whether you’re a professional, student, or tech enthusiast.
See It in Action and Enroll for Free
Checkout this 2 minute explainer video for the course that was entirely created using AI, and a get a taste of what's in store in the course.
The best part? The course is completely free to enroll, making it an excellent opportunity to enhance your understanding of these transformative technologies without any barriers.
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
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XRP Unlocks Liquidity in Maple Finance Game-Changing Loan
DeFi | Jan 20, 2025
Image courtesy of AI
XRP Becomes Collateral as Maple Finance Unlocks New Liquidity for XRP Holders
Maple Finance, a leader in institutional crypto lending, shared on X that they completed their first defi loan ever using XRP as collateral, unlocking greater liquidity and flexibility for XRP holders without requiring borrowers to sell their assets. The groundbreaking loan was facilitated by Digital Wealth Partners who explained on Linkedin that it was a seven-figure loan denominated in USDC. The entire process took just 72 hours to complete spotlighting how the efficiencies of blockchain are changing the way financial transactions are conducted.
See: Bank of Canada Publishes Analytical Notes on DeFi
Matthew Snider, CIO of Digital Wealth Partners:
"In just three business days, we turned client assets into actionable liquidity, driven by smart contract repayments and backed by institutional custody for increased security."
Benefits for XRP Holders
This new decentralized finance lending model allows borrowers to source loans without selling their XRP, and offers attractive Loan to Value (LTV) rates while smart contracts reduce complexity and institutional grade custody safeguard the pledged assets.
The price of XRP has surged recently to approx 35% in just the past 7 days (currently trading at $3.13 at the time of writing) due to President Trump's pro-crypto stance and perceived weak legal appeal from the Securities and Exchange Commission in the ongoing legal battle between XRP and the SEC.
Maple Finance and Syrup.fi Ecosystem
Maple Finance is based in Melbourne, Australia and operates globally providing institutional grade blockchain lending solutions. The platform serves accredited investors via its KYC-compliant processes and offers collateralized loans for cryptocurrencies like Bitcoin, Ethereum, Solana, and USDC.
See: Ep20-Jan 11: Bitcoin Backed Loans and 2x Credit – Putting Your Crypto to Work
Further, Maple Finance developed a protocol called Syrup.fi, which extends Maple Finance's institutional grade loans to the broader DeFi community allowing individual users to access high quality yields generated from Maple's established lending infrastructure.
Key DeFi Statistics in Jan 2025
According to DefiLama, at the time of writing the Total Value Locked (TVL) across all chains and defi protocols is approx $126.5 billion which has increased 2.79% in the lats 24 hours alone.
The total market cap of all Stablecoins is currently $210.072 billion (provides liquidity across all defi platforms).
The previous 24 hour trading volume across all defi platforms is $42.889 billion, a very active and growing market.
Looking Ahead
XRP experts anticipate it to play a bigger role in the future of Web3's financial ecosystem. Ripple is focusing on tokenizing real world assets (RWA) and enabling seamless payments and transfers across different blockchain networks.
See: SEC Files Appeal Brief as XRP Hits Record High
This effort may lead to the development of more financial tools that use XRP such as the XRP-backed loan demonstrating the potential for crypto backed loans to innovate and expand.
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
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SEC Files Appeal Brief as XRP Hits Record High
Crypto Enforcement | Jan 17, 2025
Image: Freepik/wayhomestudio
SEC Appeals Ripple's XRP Classification As XRP Price Touches All Time High
With just a handful of days remaining in Gary Gensler's job as Chair of the U.S. Securities Commission (SEC), the legal saga between SEC vs Ripple Labs over the classification of XRP continues. On January 15, the SEC filed an appeal to try and overturn the 2023 ruling that XRP is not a security when sold to retail investors. The appeal reopens the debate whether XRP sales to retail investors meets the criteria for investment contracts under the Howey Test, arguing that XRP investors expected profits from Ripple's efforts.
See: Trump Picks SEC Chair, Shakes Up Crypto and Oversight
Stuart Alderoty, Ripple’s Chief Legal Officer:
As expected, the SEC’s appeal brief is a rehash of already failed arguments –and likely to be abandoned by the next administration. We’ll respond formally in due time. For now, know this: the SEC’s lawsuit is just noise. A new era of pro-innovation regulation is coming, and… https://t.co/3ZxO64Fs8C
— Stuart Alderoty (@s_alderoty) January 16, 2025
Market Reaction
The market's response to the idea that the 'SEC's appeal brief is simply a rehash of already failed arguments', pushed XRP's price upwards to $3.38, just shy of it's all time high price of $3.40, reached on Jan 6, 2018 per Coingecko. Analysts and traders are quite optimistic around the potential outcome of the legal case, and are speculating about XRP exchange-traded-funds and the coin being included in national bitcoin/crypto reserves that would further boost demand for XRP. On social media, reactions were mixed with memes and commentary with many seeing the SEC's appeal as redundant while others remained cautious.
Brad Garlinghouse, Ripple CEO on X here:
"If Gensler and the SEC were rational, they would have moved on from this case long ago. It certainly hasn't protected investors and instead has damaged the credibility and reputation of the SEC."
See: Gensler’s Final Salvo as SEC Targets Unicoin in Crypto Clash
Paul Atkins, Appointed SEC chair and Former SEC Commissioner on FT:
"The SEC's approach to digital assets needs a comprehensive reevaluation to foster innovation while ensuring investor protection."
Why It Matters
The SEC’s appeal and subsequent XRP price jump highlight the importance of this case for the future of crypto. If Ripple wins, it could set a global standard for how digital assets are classified, providing more regulatory clarity and freedom to innovate.
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
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2024 Global Fintech Funding Insights for Investors & Founders
Fintech Report | Jan 16, 2025
Image: State of Fintech 2024 (CB Insights)
'State of Fintech 2024' Funding, Deals and Innovations for Growth in 2025
CB Insights published it's annual 'State of Fintech 2024 - Global Recap' report (whopping 200 page PDF) with the top line being global financial technology funding dropped 20% year-over-year to USD $33.7 billion. Certain sectors continue to shine with innovations in payments, blockchain and embedded finance showing robustness for 2025. This article presents key trends and takeaways for fintechs and investors to digest.
Key Global Funding Trends in 2024
Global fintech funding in 2024 dropped 20% year-over-year to USD $33.7 billion (deal volume also shrank 17%). It was a sobering year with macroeconomic headwinds in the air from volatile interest rates, cautious investment landscape, and geopolitical instability.
The payments sector led and captured 40% of total funding as embedded finance and B2B solutions enjoyed growth, as companies of all stripes looked to integrate financial services.
See: Fintech Trends & Predictions Across Generations in 2025
Enterprise adoption and tokenization drove blockchain funding to $6.5 billion globally, as more use cases emerge beyond speculative trading of cryptocurrencies.
Unicorns were rare sightings with only two (2) new fintech unicorns rearing their head in Q4, 2024, for a total cumulative count of 326 unicorns to date. Many established unicorns continued to thrive.
M&A activity increased 6% year-over-year with 664 exits including Stripe's $1.1 billion acquisition of Bridge.
Regionally, the U.S continued to dominate its position as the largest fintech market raising $3.9 billion in Q4.
Latin America was the fastest growing market fuelled by financial inclusion initiatives, raising $1.1 billion in Q4 alone.
Despite the global funding drop, one silver lining was the focus on quality over quantity (and then backing up the truck), driving a 33% increase in the median deal size to $4 million, primarily allocated to late stage firms with clear growth trajectories. While seasoned investors dominated activity, newer investors pulled back.
Investor Perspective
Although 2024 was largely a challenging environment, key late stage opportunities particularly in payments and blockchain firms such as Stripe’s $1.1B acquisition of Bridge and Zepz’s $267M Series F. Notably, embedded finance attracted over $14 billion globally, as non-financial platform businesses looked to integrate financial services as a new source of revenue.
See: Wealth Management Insights for Fintechs and Investors
- Total global fintech funding fell to $33.7 billion (20% decline yoy)
- Embedded finance boosted payments funding to $14 billion globally
- Total blockchain funding $6.5 billion
- Median deal size increased 33% (yoy) to $4 million
- Focus on later stage companies with strong business models and proven scalability in high growth sectors like blockchain infrastructure and cross-border payments
Founder Perspective
Fintech funding was more scarce in 2024. Global deal volumes shrank 17% but median deal sizes increased 33% to $4 million year-over-year. Not surprisingly, founders who aligned their models with hot trends like AI personalization tools and embedded finance had more success in securing funding.
See: M&A Opportunity as Fintech Valuations Drop
- AI is becoming an essential tool in fintech. Use cases are growing in lending and wealth management
- Blockchain funding expected to exceed $8 billion globally in 2025
- Embedded finance revenue is projected to exceed $140 billion in 2025 (growth potential)
- Cross border payments is forecasting 20% growth in 2025 due to global commerce
- Notable deals in 2024 - Public securing $105 million, and Zest AI raising $200 million Series H
- Founders should align their offerings with global trends and build partnerships with established players while focusing on scalability and gaining investor trust
2024 Fintech Funding in Canada
In 2024, a total of $300 million was raised across 14 deals in key sectors such as blockchain, digital banking and payments. Canada accounted for a modest 0.9% share of global fintech funding but its focus on niche sectors like blockchain and payments make it stand out. A few notable deals include:
- Neo Financial raised USD $80 million in a Series D round
- Blockstream secured USD $152 million through a convertible note
- PiP World attracted USD $10 million in seed funding
- Canadian fintechs are uniquely positioned to capitalize on AI automation in wealthtech and insurtech sectors. Collaboration with U.S. and European markets could expand Canada's influence in 2025
Closing Outlook
While fintech in 2024 was a reflective year, fintech in 2025 offers some big opportunities in blockchain, AI, and cross-border payments. Embedded finance will continue to expand to new industries, creating new ways for customers to engage. Create scalable ideas, form smart partnerships and stay ahead of key trends in this fast changing market. Learn more, download the full 200 page report from CB Insights.
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
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