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
Finland’s 39% Digital Finance Result Has Lessons For Canada
September 22, 2026 | NCFA Insight | Financial Literacy And Consumer Capability, Artificial Intelligence And Data, Cybersecurity And Fraud, Lending Consumer Credit And BNPL, Digital Assets Blockchain And Tokenization
Finland's Data Exposes Six Gaps Canada Should Measure
On September 16, 2026, the OECD published Finland's digital financial literacy strategy, backed by a survey of 2,061 adults and an comprehensive review of how people bank, borrow, invest, use artificial intelligence, encounter fraud and judge financial information online.
The headline result is uncomfortable for any country with a highly digital financial system. Only 39% of Finnish adults reached the OECD's minimum digital financial literacy benchmark. Finland is hardly a digital laggard. Internet use is nearly universal, most financial products are managed online and Finland performs above the OECD average on comparable digital financial literacy measures. Canada also has extensive financial literacy research and generally performs strongly on international measures, but no directly comparable national digital financial literacy benchmark appears to be published.
Canada starts from a similar position on access. Statistics Canada found that 94% of Canadians used the internet for personal purposes in 2022 and 82% of internet users banked online. The real gap begins after access. Can consumers judge the products, risks and advice they encounter once they are online?
10 Numbers Behind The Digital Finance Gap
| 97% / 95% | of Finnish adults used the internet daily, while 95% of current or payment account holders managed those accounts online. |
| 70/100 vs. 63/100 | was the average general digital literacy score versus the average digital financial literacy score. Only 39% reached the minimum digital financial literacy benchmark. |
| 54/100 | was the digital financial literacy score for adults aged 18 to 29, the lowest of any age group. |
| 46% / 56% | of adults aged 18 to 29 used AI for financial advice at least monthly, while 56% said they needed help using digital financial services. |
| 70% / 43% / 52% | of young adults cited friends or family, influencers and online advertising respectively as sources influencing financial product choices. |
| 32% / 35% vs. 45% | used short term online credit. Among users, 35% reached the digital financial literacy benchmark compared with 45% of non-users. |
| 16% | owned crypto-assets, about four times the OECD comparison rate used in the report. Among owners, 68% cited fun, 51% fear of missing out and 43% making money quickly, while owners performed worse than non-owners on two of three basic crypto knowledge questions. |
| 31% / 38% vs. 21% | of adults encountered at least one online financial scam or fraud in the previous two years. Exposure was 38% among people below the digital financial literacy benchmark versus 21% among those above it, rising to 56% versus 33% among young adults. |
| 41% | rarely or never checked whether an online financial provider was regulated. |
| 68% / 75% / 23% | rejected the view that online financial providers are generally trustworthy, 75% would not let their bank share financial data with other companies for personalized advice, and only 23% recognized that financial providers may use non-financial personal data in credit or insurance decisions. |
Responder percentages are interesting but the cross-section of those responses are more revealing. They show where digital adoption, financial judgment, trust and consumer protection stop moving together.
1. High Digital Use Can Hide Financial Capability Gaps
Finland has already cleared many of the hurdles normally associated with digital inclusion. Internet use is nearly universal, 95% of current or payment account holders manage those accounts online and Finnish adults scored an average 70 out of 100 on the OECD's general digital literacy measure. Yet their average digital financial literacy score fell to 63, and most adults didn't reach the minimum benchmark.
See: Open Banking’s Next Battle Is Decision Intelligence
That difference is important.
Digital literacy measures whether someone can function effectively and safely online. Digital financial literacy adds another layer by requiring consumers to understand financial products, compare alternatives, check providers, protect financial information and make informed decisions about risk. Being good at the first doesn't establish competence in the second.
Canada already recognizes this. The National Financial Literacy Strategy treats digital access and digital literacy as related but separate issues and calls for consumers to develop the skills needed to navigate an increasingly digital financial marketplace.
The Canadian numbers show why access alone isn't enough. Among internet users in 2022, only 54% of people without a high school diploma banked online, compared with 70% of adults aged 65 and older and 73% of people in the lowest income group. Access is high overall, but participation is uneven. Measuring internet or online banking use alone won't show whether Canadians understand the financial decisions they make once they are online.
2. Young Adults Use More AI And Need More Financial Help
The age results overturn an easy assumption about digital finance. Finland's youngest adults are among its most active users of newer technology, yet they recorded the weakest digital financial literacy score. Almost half of 18 to 29 year olds used AI for financial advice at least monthly, while more than half said they needed help with digital financial services.
The information environment is different for this group too. Seventy per cent said recommendations from friends, family or acquaintances influenced financial product choices. Forty three per cent cited influencers and 52% cited online advertising. The issue isn't whether young adults can find financial information. They have more sources competing for their attention than previous generations did.
The OSC's Canadian finfluencer research found that 82% of investors aged 18 to 24 use social media for investment information. In a separate experiment, 38% of participants exposed to promotional investment content bought the promoted asset versus 8% in the control group.
AI now adds a personalized, conversational source that exists beside social media, advertising, financial institutions and licensed advisers. Financial capability for younger Canadians therefore has to include source verification, recognizing promotional content, understanding when regulated advice is required and checking an AI answer before acting on it. Teaching someone how to operate a financial app addresses a different problem.
3. Faster Borrowing And Investing Demand Better Decisions
Digital finance can improve access and lower costs, but it can also shorten the time available to understand a financial commitment.
Finland's short term credit data highlights the problem. Users of online credit products had lower digital financial literacy than non-users and were more likely to report impulsive online purchasing. Only 35% of users reached the minimum literacy benchmark, compared with 45% of non-users.
Crypto shows the same tension from the investment side. Finland's crypto ownership rate was four times the OECD comparison rate used in the report. Participation was particularly high among younger adults, yet owners performed worse than non-owners on two of three basic crypto knowledge questions. The reasons for owning also mixed investing with experimentation, entertainment, fear of missing out and the desire to make money quickly.
Canada has already reached substantial crypto participation. The OSC's 2025 Canadian crypto survey found that 25% of Canadian adults currently owned crypto-assets. Meanwhile, Canada's BNPL market continues to make small amounts of credit available directly inside checkout flows, while credit reporting remains inconsistent across providers and bureaus.
See: Buy Now, Pay Later And Your Credit File In Canada
Canada already requires financial knowledge to be delivered when it's relevant and before a consumer commits. Digital products can do this far more precisely than a classroom or generic information page. Total borrowing cost can appear before a BNPL commitment. An investing app can explain concentration or volatility while an order is being prepared. A crypto platform can surface custody, loss and regulatory information before funds leave the account.
Less friction in the transaction makes that moment more important, not less.
4. Fraud Shows What Capability Gaps Can Cost
Finland's strongest link between literacy and a real financial outcome appears in its fraud data. Adults below the digital financial literacy benchmark were exposed to scams and fraud at almost twice the rate of those above it. Among young adults, exposure reached 56% for people with lower literacy versus 33% among their higher literacy peers.
One behaviour jumps out. Four in ten Finnish adults rarely or never checked whether an online financial provider was regulated before buying a financial product. That's a serious weakness when consumers can discover an investment, lender, crypto platform or purported adviser through a social post, advertisement, search result or AI conversation and transact minutes later.
Canada doesn't need Finnish data to establish that fraud is a major domestic problem. Canadians reported more than $704 million in fraud losses in 2025, according to the federal government's National Anti-Fraud Strategy consultation, and only an estimated 5% to 10% of incidents are reported. Fraudsters are also using AI and operating across financial services, telecom, social media and other channels.
Financial education can improve the odds that someone recognizes a warning sign, but Finland doesn't assign the problem to consumers alone. Its strategy pairs literacy with security controls, clear institutional warnings, consumer protection, reporting processes and coordination among financial firms and public agencies.
See: How Fraud Broke The Old Rules Of Trust And Verification
Canada can apply the same logic by making provider verification much easier. Before sending money, consumers should be able to answer four basic questions quickly: Who operates this service? Is it regulated? What protections apply? Where do I report a problem? Teaching consumers to verify a provider works better when the verification itself isn't difficult.
5. Digital Use Can Rise While Trust Stays Low
Finland also shows why transaction volume doesn't tell us how consumers feel about the financial system underneath it. Digital financial services are deeply embedded in everyday life, yet 68% of adults rejected the statement that online financial providers are generally trustworthy. Three quarters wouldn't allow their bank to share financial information with other companies for personalized financial advice.
At the same time, only 23% correctly recognized that financial providers may use non-financial personal data, including social media information, when making credit or insurance decisions. Consumers can therefore be cautious about data use without fully understanding how data-driven finance works.
That has direct relevance for Canadian consumer-driven banking, AI-powered financial services and future forms of financial data portability. Consent can't do all the work. A customer also needs to understand who receives the information, what can be inferred from it, what decision it may influence and what rights apply afterward.
See: Canada's Open Banking Strategy Starts With Trust
This is where data literacy becomes financial literacy. A useful Canadian strategy should measure whether consumers understand the consequences of sharing financial and non-financial data, rather than treating acceptance of a disclosure screen as evidence of informed participation.
6. Canada Needs A Better Measure Of Digital Financial Capability
FCAC's strategy already calls for digital literacy, trustworthy financial help, behavioural design, stronger consumer protection and just in time information. Its 2026 to 2029 strategic plan is now operating in a market where AI, fraud and new financial products continue to increase the demands placed on consumers.
Finland receives kudos for applying the OECD digital financial literacy framework to a nationally representative survey and using the results to identify where digital financial capability is weakest. The framework combines financial knowledge, behaviour and attitudes into one digital financial literacy score. It also tests whether people understand digital contracts and crypto risk, compare alternatives, check whether providers are regulated, protect their credentials and recognize unsafe online behaviour. That gives policymakers a way to compare groups and connect capability with outcomes such as fraud exposure.
Canada has useful national measures of internet use, online banking, financial resilience, fraud, investment behaviour and digital access, but no current nationally representative benchmark appears to combine these digital financial capabilities and report the share of adults who meet a common minimum standard.
Canada could measure whether a young adult using AI for investing has the same capability as someone using a bank adviser, whether people taking digital credit understand total obligations, whether crypto owners understand loss and custody risk, whether consumers can verify online providers and whether people know what happens to data after they consent to sharing it.
The measures should also follow outcomes. Finland proposes evaluating whether programmes change knowledge and behaviour instead of relying on page views, campaign reach or course participation. Canada could go further by connecting digital financial capability with fraud losses and reporting, debt stress, complaints, switching behaviour and other observable outcomes.
That would also help separate problems that education can address from problems that require better product design, supervision or consumer protection. A consumer shouldn't need expert knowledge to compensate for a confusing interface, hidden cost, weak fraud control or misleading recommendation.
What Canada Should Take From Finland's Results
1. Measure what people can do after they get online. Internet access and online banking tell us who can participate. They don't tell us whether someone can compare products, understand the risk, check a provider or recognize when something looks wrong.
2. Don't mistake digital confidence for financial capability. Younger adults may be highly comfortable with apps, AI, crypto and social media while still needing help judging financial information and risk. Canada's approach to younger consumers should reflect that difference.
3. Give people the right information before they commit. Borrowing costs, investment risk, provider status, data use and complaint rights are most useful while someone is deciding whether to borrow, invest, share data or send money.
See: AI In Canadian Financial Advice And The Governance Standards That Must Be Followed
4. Make it easy to check who you're dealing with. Consumers shouldn't have to search through several regulatory websites to find out whether a lender, investment platform or adviser is legitimate, who regulates it and what protections apply.
5. Tie financial literacy to Canada's fraud response. Knowing that scams exist isn't enough. Canada should measure whether people can recognize a suspicious approach, verify it, stop a payment, report the incident and understand what to do next.
6. Judge financial education by what people understand and do differently. Page views, downloads and campaign reach show whether information was seen. The more useful measures are whether people make better decisions, avoid preventable losses and know where to turn when something goes wrong.
Finland's 39% result isn't evidence that Canada's number would be the same. It is evidence that high digital adoption can conceal weaknesses that adoption data won't reveal. Canada already knows how many people get online and how many bank there, but do they know whether people can make sound financial decisions once they arrive.
Talking Point
Canada can measure how quickly consumers adopt digital finance. Should its next financial literacy strategy also establish how many Canadians have the minimum capability to use it safely?
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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Valour Launches AI Crypto Hedge Fund Beyond 100+ ETPs
September 21, 2026 | NCFA Market Activity | Blockchain, Crypto, Digital Assets, Tokens, CBDCs, Stablecoins, Metaverse, NFTs, Fintech AI/ML, Data-driven, Automation, Generative AI, Fundraising, Investing, Trading, Innovation and Resources
Smart Crypto Fund Expands Valour Beyond Exchange Traded Products
On September 21, 2026, DeFi Technologies subsidiary Valour launched Valour Funds SPC, adding actively managed digital asset funds to its exchange traded product business. Its first fund, Smart Crypto Fund SP, uses an investment strategy developed and managed by Swiss portfolio manager Neuronomics AG.
Valour already lists 101 digital asset ETPs across eight exchanges, building on products such as its yield bearing Bitcoin ETP. Its range includes Bitcoin, Ethereum, other crypto assets, baskets, staking strategies and leveraged products. Smart Crypto Fund adds active portfolio management, giving Neuronomics discretion to change holdings, position sizes and total market exposure as market conditions change.
The fund is aimed at professional and qualified investors. Smart Crypto Fund is the first segregated portfolio of Valour Funds SPC, a Cayman Islands company registered with the Cayman Islands Monetary Authority. DeFi Technologies is based in Toronto, but Smart Crypto Fund isn't a Canadian fund and Valour hasn't announced Canadian distribution or retail availability.
Several details investors would normally use to compare funds remain undisclosed, including the minimum investment, management or performance fees, subscription and redemption terms, base currency and capital raised.
Neuronomics AI Sets Crypto Allocation and Risk
Neuronomics says its models analyze price, volume and other market data across short and medium periods. They estimate expected returns and risk, then guide asset selection and position sizes. The fund can reduce market exposure when the models find fewer attractive opportunities or higher risk, so it doesn't have to remain fully invested in crypto. Valour says the strategy also uses risk budgets, limits on individual assets and concentration controls, while execution algorithms consider liquidity and expected trading costs.
Michael Kometer, Founder Neuronomics on how the system influences the portfolio:
“Guides what we hold, how much risk we take and when we reduce exposure.”
Neuronomics is a FINMA authorized Swiss portfolio manager with an existing corporate relationship to DeFi Technologies. DeFi acquired control of the company in 2025, although its ownership later fell to 44.68%. DeFi now accounts for Neuronomics as an associate rather than a controlled subsidiary. Smart Crypto Fund launches without a published live performance record, so the AI strategy will ultimately be judged on its results after fees and risk.
Valour Enters Active Crypto Asset Management
Valour enters active management with an established distribution business. During the second quarter of 2026, its ETP operation reported average assets under management of US$471.5 million and US$22.8 million in net inflows. Management fees plus staking and lending income generated US$3.0 million for the quarter.
Smart Crypto Fund lets Valour sell portfolio decisions as well as market access. Its ETPs package digital asset exposure into securities traded on exchanges, while the new fund gives professional investors an actively managed portfolio. Valour hasn't disclosed the fund's fees, so its economics can't yet be compared with the ETP business.
See: DeFi Technologies Begins Nasdaq Trading in Global Expansion
Galaxy Asset Management runs active and passive digital asset strategies and reported US$4.4 billion in asset management AUM at June 30. CoinShares offers quantitative market neutral and directional strategies, while Bitwise manages ETFs, private funds and a crypto carry fund for qualified purchasers. Smart Crypto Fund will compete for professional capital against managers with longer active fund records.
The launch also connects businesses already inside DeFi Technologies. Valour supplies digital asset products and distribution, Neuronomics manages the portfolio, Stillman Digital provides institutional trading and liquidity services, and DeFi Alpha trades for the parent company's own account. Smart Crypto Fund brings outside investor capital into that group of businesses.
Talking Point
Valour built its ETP business by packaging digital assets for exchange investors. Smart Crypto Fund now asks professional investors to pay for active portfolio decisions. Will its live results show that the AI strategy adds enough value after fees and risk to justify active management?
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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NCFA Weekly Fintech Intelligence Sep 12-18, 2026
Sep 12, 2026 | Last Updated Sep 22, 2026 | Artificial Intelligence And Data, Capital Markets Infrastructure And Funding, Regulation And Policy, Digital Assets Blockchain And Tokenization, Digital Banking And BaaS, Open Banking Open Finance And Data Sharing, Payments Infrastructure And Money Movement, Cross Border Payments And FX, Lending Consumer Credit And BNPL, Cybersecurity Fraud And Financial Crime
] Image: Freepik
This live weekly NCFA intelligence page tracks financial technology developments that significantly affect how fintechs build, sell, raise capital, and operate under scrutiny. Coverage prioritizes Canada and includes global events that directly influence competitive conditions, market access, and execution realities across fintech sectors. This page will be updated throughout the week with market movers in a live format and then each week we'll close the prior week's contents in prep for the upcoming week, and continue on a rolling basis. (Missed prior week's Fintech Whisperer? (December 6-12, 2025, December 13-19, 2025, January 1-9, 2026, January 10-16, 2026, January 17-23, 2026, January 24-30, 2026, January 31-February 6, 2026, February 7-13, 2026, February 14-20, 2026, February 21-27, 2026, February 28-March 6, 2026, March 7-13, 2026, March 14-20, 2026, March 21-27, 2026, March 28-April 3, 2026, April 4-10, 2026, April 11-17, 2026, April 18-24, 2026, April 25-May 1, 2026, May 2-8, 2026, May 9-15, 2026, May 16-22, 2026, May 23-29, 2026, May 30-June 5, 2026, June 6-12, 2026, June 13-19, 2026, June 20-26, 2026, June 27-July 3, 2026, July 4-July 10, 2026, July 11-July 17, 2026, July 18-24, 2026, July 25-July 31 2026, August 1-August 7, 2026, August 8-August 14, 2026, August 15-August 21, 2026, August 22-August 28, 2026, August 29-September 4, 2026, September 5-September 11, 2026).
Weekly Fintech Market Intelligence Sep 12 - Sep 18, 2026
Capital Markets Infrastructure And Funding
CFTC Broadens Registration Relief for Passive Trading Software
September 17, 2026, United States
- The CFTC Market Participants Division issued a no action position for providers of passive software that facilitates trading with registered futures commission merchants, introducing brokers and designated contract markets.
- Subject to specified conditions, staff will not recommend enforcement for failure by qualifying providers or relevant personnel to register as introducing brokers or associated persons.
- The position is similar to relief granted earlier in Staff Letter 26-09 but is now broadly available to passive software providers that meet the conditions.
The relief gives trading apps, software developers and wallet interfaces a clearer way to connect users with regulated derivatives markets without automatically entering the introducing broker registration perimeter. Firms still need to test their activities against the letter's conditions, especially where software takes a more active role in solicitation or execution.
SEC Opens Five Year Pathway for Tokenized U.S. Stock Trading
September 17, 2026, United States
- The SEC granted temporary conditional relief allowing Tokenized Securities Venues to trade tokenized National Market System stocks through permissioned automated market makers and liquidity pools.
- Eligible venues receive conditional relief from the Exchange Act definition of an exchange, while qualifying liquidity providers can receive temporary relief from the dealer definition.
- Conditions include equivalent shareholder rights, issuer notification for certain third party tokenization, public and auditable smart contracts, synchronized trading halts and limits on trading activity. The exemptions expire five years after publication.
Tokenized U.S. equities now have a defined regulatory route for limited onchain secondary trading. Venues, liquidity providers and infrastructure firms can assess whether their technology, custody, smart contracts and market controls meet the conditions rather than waiting for a complete rewrite of securities market rules.
Portage Closes US$600M Fintech Ventures IV
September 16, 2026, Canada / Global
- Portage closed Ventures IV at US$600 million, adding another large dedicated pool of capital for fintech and financial services companies.
- The fund includes commitments from existing institutional investors and new strategic limited partners including Broadridge and Fifth Third Bank.
- Portage invests across financial services categories including banking, insurance, consumer and SME finance, wealth management and fintech infrastructure.
A US$600 million final close gives one of Canada's largest fintech investors substantial capital to deploy while venture markets remain selective. The size of the fund also keeps Canadian based investment capacity relevant in financing fintech companies that may need several rounds of private capital before reaching an acquisition or public market.
Canada Investment Summit Mobilizes Nearly C$500B
September 15, 2026, Canada
- The federal government says the first Canada Investment Summit resulted in nearly C$500 billion in new investment commitments, including almost C$325 billion of financing from major Canadian banks and nearly C$100 billion from pension funds, insurers and institutional investors.
- CPP Investments and Brookfield launched the C$50 billion Maple Fund, while TD committed C$150 billion, Scotiabank more than C$100 billion and BMO C$70 billion for Canadian businesses, infrastructure and strategic sectors.
- The government also announced a Productivity Mega Deduction that expands immediate deductions for business assets and says Canada's marginal effective tax rate on new investment will fall from roughly 13% to 6.4%.
Canada is putting much larger pools of private financing beside more aggressive investment tax treatment. The question for fintech and technology companies is how much of that capital reaches growth businesses, AI, cybersecurity and commercialization. NCFA's RBCx scaleup analysis shows why Canadian companies still need more late stage domestic capital to scale at home.
Regulation And Policy
FCA Finalizes Crypto Perimeter Guidance Ahead of 2027 Regime
September 16, 2026, United Kingdom
- The FCA published final perimeter guidance explaining which cryptoasset activities may require authorization under the UK's new regulatory regime, including stablecoin issuance, trading platforms, dealing, arranging, safeguarding and staking.
- The expanded regulatory perimeter takes effect October 25, 2027. Existing FSMA authorizations, MLR registrations and payment or e-money permissions will not automatically cover newly regulated cryptoasset activities.
- The authorization application window opens September 30, 2026 and closes February 28, 2027 for firms seeking access to the savings provisions.
UK crypto firms now have a defined test for which activities require permission and a live timetable for entering the new regime. Firms need to map each product, custody arrangement, trading function and technical role to the perimeter before the application window closes, rather than relying on existing registrations to carry forward.
U.S. Senate Fails to Advance CLARITY Act
September 15, 2026, United States
- The U.S. Senate voted 50-49 on the procedural motion to advance the CLARITY Act, short of the 60 votes required to end debate and proceed.
- The legislation would establish a federal market structure for digital assets and divide regulatory responsibilities between the Securities and Exchange Commission and Commodity Futures Trading Commission.
- The failed procedural vote leaves the bill stalled unless Senate leaders bring it back for reconsideration or pursue another legislative approach.
The Senate vote leaves U.S. digital asset firms without the federal market structure framework the bill was intended to establish. Exchanges, issuers and other market participants remain exposed to existing SEC and CFTC rules while Congress decides whether the legislation can be revived.
Canada Fast Tracks Tax Rulings For C$1B Investments
September 14, 2026, Canada
- The Canada Revenue Agency is prioritizing Advance Income Tax Ruling requests tied to investments of C$1 billion or more, effective September 14.
- Advance rulings give taxpayers a binding CRA determination on how Canadian tax law applies to proposed transactions before capital is committed.
- The measure implements the Spring Economic Update commitment to prioritize rulings for large projects, productivity enhancing investment and projects in critical sectors.
Tax certainty is becoming part of Canada's large investment toolkit. Faster binding rulings can affect financing structures, project economics and investment approvals when tax treatment needs to be settled before significant capital is committed.
FCA Seeks Views On Tokenized Gold
September 14, 2026, United Kingdom
- The Financial Conduct Authority is seeking views on whether tokenized gold could improve how gold is traded, transferred, pledged and held in UK markets.
- The FCA is examining whether regulatory treatment could support efficiency and competitiveness while maintaining market integrity and consumer protection, with feedback due October 23.
- The work follows the FCA and Bank of England's wholesale tokenization review, where market participants raised gold as a potential tokenized asset and collateral use case.
The FCA has taken tokenized gold beyond the exploratory stage covered in NCFA's earlier wholesale collateral analysis. Market participants now have a defined regulatory input window on ownership, transfer, pledging and potential market treatment before authorities decide whether more specific rules are warranted.
Digital Assets Blockchain And Tokenization
OCC Conditionally Approves Bastion National Trust Bank Conversion
September 18, 2026, United States
- The OCC conditionally approved Bastion Platforms Trust Company's conversion from a New York state trust company into Bastion Platforms National Trust Company, an uninsured national trust bank.
- The approved business plan includes white label stablecoin issuance, fiduciary custodial wallets, conversion services for custody customers and issuer services for other regulated stablecoin issuers.
- The bank will not take deposits or carry FDIC insurance. Bastion must complete the OCC's conversion requirements before operating under the national charter.
Bastion now has a federal route for bringing stablecoin issuance, custody and conversion infrastructure under one OCC supervised trust bank structure. Enterprise clients evaluating white label stablecoin programs gain another federally supervised infrastructure provider, while Bastion still needs to complete the conversion requirements before operating under the national charter.
OCC Gives Agora Preliminary National Trust Bank Approval
September 18, 2026, United States
- The OCC granted preliminary conditional approval for Agora National Trust Bank, a proposed uninsured national trust bank owned by Agora Atlas Corp.
- The proposed bank would support dollar backed stablecoin issuance and reserve maintenance, digital asset custody, payment and settlement services, cross border transactions and fiduciary investment advisory services for institutional customers.
- Agora plans to transition AUSD issuance from Agora Bermuda to the bank after establishment. Final approval and authorization to commence business remain subject to OCC preopening requirements.
Agora now has a federal charter route for moving AUSD issuance, custody and transaction services into an OCC supervised trust bank. The approval gives institutional stablecoin infrastructure a clearer federal operating structure, but Agora cannot begin business through the proposed bank until it satisfies the OCC's preopening conditions.
Hong Kong Sets Digital Asset and Tokenization Priorities for 2026
September 16, 2026, Hong Kong
- Hong Kong's 2026 Policy Address calls for enhanced virtual asset licensing regimes and more specific regulatory guidance for virtual asset service providers.
- The government plans to improve the regulatory framework for tokenized investment products, including gold and other suitable real world assets on licensed platforms, and promote regulated stablecoin trading and their use in settling tokenized money market funds.
- The Hong Kong Monetary Authority plans to implement central bank digital currency settlement and 24/7 operations under EnsembleTX around the end of 2026 while continuing work on additional tokenized deposit use cases.
Hong Kong is coordinating licensing, tokenized securities, stablecoins and settlement infrastructure within one policy program rather than treating them as separate initiatives. Financial institutions and digital asset firms can plan against a clearer sequence of regulated distribution, tokenized cash settlement and round the clock infrastructure as the individual measures are implemented.
Standard Chartered Adds LMAX Digital Asset Custody
September 16, 2026, Luxembourg / United Arab Emirates
- Standard Chartered has been appointed digital asset custodian for LMAX Group through Standard Chartered Luxembourg and its DFSA regulated DIFC branch.
- LMAX is the first client onboarded to Standard Chartered Luxembourg's digital asset custody platform following the bank's MiCA authorization.
- The custody relationship expands a partnership that already includes live institutional digital asset prime brokerage trades completed by Standard Chartered and LMAX in July.
LMAX is now using Standard Chartered for regulated institutional custody in both Europe and the Middle East. The arrangement gives the bank a live client for its Luxembourg custody platform and extends the pair's relationship from trading and credit intermediation into asset safekeeping.
Lending Consumer Credit And BNPL
Credit Acceptance Settlement Imposes New Subprime Auto Lending Controls
September 17, 2026, United States
- A coalition of 41 states secured a settlement with Credit Acceptance Corporation providing US$694 million in cash and debt relief connected with consumer auto loans.
- The agreement includes US$60 million in cash restitution, US$388 million in debt relief for certain borrowers whose vehicles were repossessed and US$246 million for qualifying borrowers whose vehicles were not repossessed.
- Operating requirements include loan risk disclosures, protections for certain loans that fail quickly, vehicle price limits for specified borrowers, dealer monitoring and controls around vehicle service contract and GAP product sales.
The settlement reaches directly into loan design, pricing, disclosure and dealer oversight rather than ending with a financial penalty. Auto lenders and lending platforms serving higher risk borrowers should review affordability controls, dealer incentives, add on products and post origination relief processes against the practices targeted by the agreement.
Artificial Intelligence And Data
OCC Gives Catena Preliminary National Trust Bank Approval
September 18, 2026, United States
- The OCC granted preliminary conditional approval for Catena Trust Bank, N.A., a proposed national trust bank owned by Catena Labs.
- The proposed bank would provide custody, investment management, trust, conversion, clearing and execution services across fiat currency, investment securities and digital assets, including payment stablecoins.
- Catena is building the institution around financial activity by AI agents, with controls for credentials, authority and policy enforcement. Final approval and authorization to open remain subject to OCC preopening requirements.
Catena puts an AI agent focused financial model inside the federal trust bank charter process. If it completes the OCC requirements, businesses could combine agent permissions with custody, investment management and transaction services under one supervised institution, creating a regulated test case for how autonomous software can be given financial authority without removing business control.
Digital Banking And BaaS
Revolut Secures Colombia Banking Licence
September 15, 2026, Colombia
- Revolut received its licence to operate from Colombia's Superintendencia Financiera, completing the final regulatory requirement before it can launch banking services in the country.
- The approval brings Revolut's banking licences to six markets worldwide, alongside the United Kingdom, France, Australia, Lithuania and Mexico.
- Revolut says around 200,000 Colombians have already joined its waitlist ahead of launch.
Colombia gives Revolut another market where it can operate through its own regulated bank rather than relying only on partner institutions. The approval follows its recent conditional U.S. bank approval, showing how the company is assembling local banking permissions market by market while retaining one global product and technology platform.
Open Banking Open Finance And Data Sharing
AIB Enforces Open Banking API v4.0.1
September 14, 2026, Ireland / United Kingdom
- AIB ROI and AIB UK updated their Open Banking APIs to Open Banking Limited specification v4.0.1 on September 14.
- Requests submitted from September 14 must align with v4.0.1, and AIB warns that requests that don't comply with the latest specification may be rejected.
- The API endpoints remain unchanged, while the update includes changes to the Referred Document Amount schema and regex requirements.
Open Banking API versioning is now a production dependency for firms connected to AIB. Third party providers need current payloads and validation rules in production because specification mismatches can translate directly into rejected requests and disrupted customer flows.
Payments Infrastructure And Money Movement
Saudi And Qatar National Cards Begin Cross Border Acceptance
September 15, 2026, Saudi Arabia / Qatar
- The Saudi Central Bank and Qatar Central Bank began a gradual rollout allowing Saudi mada cards to be accepted in Qatar and Qatar's HIMYAN cards to be accepted in Saudi Arabia.
- The rollout follows completion of technical and operational integration between the two national payment systems.
- The connection builds on GCC-NET, which supports ATM withdrawals and point of sale payments using national debit cards across Gulf Cooperation Council markets.
Two national card systems are becoming directly usable across each other's markets without requiring a separate international card product. For banks, payment providers and merchants in the Gulf, deeper national network interoperability can lower reliance on additional payment layers while giving customers more ways to use domestic cards when travelling across the region.
Pidgin Opens FedNow and RTP Access to Nearly 300 Credit Unions
September 15, 2026, United States
- Millennium Corporate Credit Union is giving nearly 300 member credit unions access to FedNow, The Clearing House RTP network and stablecoin capabilities through Pidgin's unified payments platform.
- Pidgin connects core processing, digital banking applications and multiple payment networks while keeping funds at the financial institution rather than in a fintech controlled holding account.
- More than 1,000 community financial institutions now have access to Pidgin's instant payment capabilities through its clients, including more than 100 institutions using the platform directly.
Instant payment access is reaching smaller financial institutions through shared infrastructure rather than individual rail integrations. Credit unions can add FedNow, RTP and future digital payment capabilities while retaining their core systems and control of member funds, reducing one of the technical barriers that can separate community institutions from larger banks.
ECB Opens Digital Euro Pilot to Online and Mobile Merchants
September 15, 2026, Euro Area
- The Eurosystem opened applications for ecommerce and mobile commerce merchants operating in the euro area to participate in the digital euro pilot.
- The merchant call follows the selection of participating payment service providers and will use a beta version of the digital euro.
- The pilot will test technical functionality, operational processes and user experience through payments involving a limited group of individual and business users.
The digital euro program is entering practical merchant and payment provider testing rather than remaining a design exercise. Participating firms can now test integration, checkout, payment acceptance and operational workflows, giving the Eurosystem direct evidence on how a potential digital euro would function inside everyday commerce.
HKDAP Runs Through Live Enterprise Settlement Workflows
September 14, 2026, Hong Kong
- Payment Asia, OSL and Anchorpoint implemented B2B settlement using HKDAP, a regulated Hong Kong dollar backed stablecoin, across real logistics and hospitality transactions.
- The workflow covered fiat funding, token minting, business payment, same day reconciliation, redemption and burn, linking each settlement to verified commercial records.
- Payment Asia used HKDAP to settle completed logistics services with ShipAny and eligible hotel, day stay and workspace services booked through Flow.
Regulated stablecoin infrastructure is entering ordinary business settlement rather than stopping at issuance and transfer tests. The workflow adds operating evidence to NCFA's question of whether stablecoins are becoming payment infrastructure, with treasury value now depending on reconciliation, redemption and commercial recordkeeping as much as token transfer.
Cross Border Payments And FX
Banking Circle Expands OSL Settlement to Six Major Currencies
September 15, 2026, Europe / Asia Pacific / Global
- Banking Circle expanded its OSL relationship beyond EUR by adding AUD, GBP, HKD, SGD and USD settlement coverage.
- OSL institutional clients can receive, convert and settle funds through BC-Now, Banking Circle's 24/7 instant payment network, across the expanded currency set.
- The arrangement gives OSL one regulated banking infrastructure connection for multi-currency settlement rather than requiring separate banking relationships in each market.
OSL can now handle funding and settlement across six major currencies through one banking relationship instead of assembling separate connections market by market. For institutional digital asset clients, that can simplify fiat access, treasury operations and liquidity management while keeping settlement connected to regulated banking infrastructure.
Thunes Adds Payout Access Across Six Middle East Markets
September 14, 2026, Middle East / Global
- Thunes expanded its Direct Global Network into Bahrain, Lebanon, Oman, South Yemen, Syria and the United Arab Emirates.
- Network members can now process local currency payouts to bank accounts, mobile wallets and cash pickup locations depending on the destination market.
- Members can access the new payout coverage through direct API integration or existing Swift connectivity, extending a network that Thunes says reaches more than 140 countries and 90 currencies.
The expansion gives Thunes customers more ways to reach recipients across six additional markets through one network connection. That reduces the number of local payout relationships a cross border provider needs to manage while extending access across bank accounts, wallets and cash pickup channels.
Risk Compliance And Regtech
EBA Finalizes Third Party Risk Guidelines for Non ICT Services
September 18, 2026, European Union
- The European Banking Authority published final guidelines for managing third party risk involving non ICT services, with particular focus on arrangements supporting critical or important functions.
- The guidelines cover the full lifecycle of third party relationships, including risk assessment, due diligence, contracting, subcontracting, monitoring, documentation and exit strategies.
- A two year transitional period will support implementation. Once applicable, the guidelines will replace the EBA's existing Guidelines on outsourcing arrangements.
European financial institutions will need to extend structured third party risk controls beyond ICT services into other critical outsourced functions. Banks, payment firms, investment firms and cryptoasset businesses should review how they identify material providers, document due diligence, monitor subcontracting and plan exits as the new framework replaces the existing outsourcing regime.
Cybersecurity Fraud And Financial Crime
S&P Global Agrees to Acquire OpenZeppelin
September 17, 2026, United States / Global
- S&P Global agreed to acquire OpenZeppelin, whose smart contract security services and open source contract libraries support infrastructure used across stablecoins, tokenized funds, DeFi protocols and institutional digital asset markets.
- OpenZeppelin Contracts underpin more than US$37 trillion in value transferred, and the company has completed more than 900 security engagements for protocols and institutions.
- S&P Global plans to combine OpenZeppelin's onchain security expertise with its risk assessment, benchmarks and institutional distribution capabilities. OpenZeppelin will continue operating as a separate business unit after closing.
The acquisition places widely used smart contract security infrastructure inside a major institutional ratings and market intelligence group. Banks, asset managers and tokenization firms could gain broader access to onchain security assessment and benchmarking, while control of a key security provider shifts closer to the institutions building regulated digital asset products.
Weekly Close
Capital is available, but access is being defined more tightly through licences, exemptions, APIs, settlement rails and operating controls. For Canadian fintechs, the way forward is to stay abreast of these changes early and building around the permissions, infrastructure and compliance requirements before they become standard market expectations.
Get the weekly Whisperer and related market intelligence through NCFA's newsletter, view the latest fintech insights, industry research, or launch into emerging financial innovation opportunities.
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 Grants 5 Year Exemption for Tokenized Stocks
September 18, 2026 | NCFA Insight | Blockchain, Crypto, Digital Assets, Tokens, CBDCs, Stablecoins, Metaverse, NFTs, Capital Markets Infrastructure And Funding, Regulation And Policy, Trading And Market Structure
Real U.S. Shares Can Trade Onchain Under Strict Limits
On September 17, 2026, the U.S. Securities and Exchange Commission granted a tokenized stock exemption for five years, allowing eligible tokenized U.S. listed stocks to trade through a new category of Tokenized Securities Venue, such as permissioned automated market makers and liquidity pools without registering as national securities exchanges, provided they meet the SEC's conditions. Certain firms supplying their own capital to those pools also receive limited relief from the Exchange Act definition of dealer.
The exemption applies to tokenized National Market System (NMS) stocks that carry the same rights and privileges as the conventional shares they represent, including dividends and voting rights. A token that only follows a company's share price does not qualify, and synthetic products that provide price exposure without the same shareholder rights are excluded.
See: BGC Launches Compute Infrastructure Markets
SEC Chair Paul Atkins said the exemption is intended to help “bring America's capital markets into the digital age,” while the agency considers whether permanent rules are needed for onchain securities trading.
The relief doesn't remove existing securities law protections. Anti fraud and anti manipulation rules still apply, and tokenized trading remains connected to the underlying listed market. Investors may use different trading and settlement technology, but the security itself remains the same legal share.
The SEC Is Limiting How Far the Test Can Go
The SEC has placed firm limits on how large tokenized trading can become during the five year test.
- Tier 1 venues can offer up to 75 stocks, with trading limited to 0.25% of each stock's prior month average daily share volume
- Tier 2 expands that to 250 stocks, with tokenized trading capped at 2.5% of each stock’s normal daily trading volume
For example, if a stock normally trades 10 million shares a day, those limits would equal about 25,000 shares under Tier 1 and 250,000 under Tier 2. Repeated breaches can force a tokenized stock off the venue for three months, while trading must stop whenever the underlying listed stock is halted or suspended.
The technology also has to remain visible to regulators. Smart contracts must be publicly auditable and deployed on a public permissionless distributed ledger, even though access to the trading pool itself remains permissioned. If an unaffiliated third party wants to tokenize a company's shares, the issuer must receive at least 30 days notice before trading begins and can object to the stock being offered on the venue.
The SEC is also working on the ownership and recordkeeping side of digital securities. On September 1, it proposed updated transfer agent rules that address blockchain based records and uncertificated securities. Trading therefore forms only one part of the regulatory work. Transfer records, shareholder ownership and settlement still have to remain accurate when securities move onto distributed ledger infrastructure.
The tokenized stock market is still small compared with conventional U.S. equities. Reuters Breakingviews estimated the market at roughly US$3 billion in value and less than US$30 billion in monthly trading volume earlier this week.
The SEC says tokenization may support longer trading hours, faster settlement, fractional ownership and self custody, but those benefits still have to be demonstrated in practice. On the same day it issued the exemption, the agency also held a roundtable on 24 hour equities trading covering settlement, liquidity, cyber resilience, staffing and market data. Traditional exchanges are extending trading hours while tokenized venues are testing different trading and settlement infrastructure around the same underlying securities.
Canada Is Testing Tokenization From a Different Direction
Canada is already testing tokenized capital markets through a different mix of projects. The Canadian Securities Administrators say more than 240 organizations have participated in Project Tokenization, including issuers, fintechs, custodians, marketplaces and clearing agencies. The work is examining practical use cases, regulatory barriers and whether temporary exemptions may be needed for live testing.
Canada is also testing tokenized debt and settlement through Project Samara. RBC, TD Securities, the Bank of Canada and Export Development Canada tested a C$100 million tokenized EDC bond, secondary trading, coupon payments, redemption and settlement using wholesale central bank deposits. The U.S. is now testing tokenized secondary trading in listed equities, while Canada is testing bonds, settlement and other parts of market infrastructure.
See: Canada Tests Tokenization Across Capital Markets
For Canadian exchanges, dealers and fintechs, the SEC exemption provides a live example of how tokenized trading can be introduced without removing issuer rights or existing market controls. The five year test will generate evidence on liquidity, settlement, custody, investor demand and operating risk that Canadian regulators and market participants can compare with results from domestic projects.
The competitive risk for Canada is less about an immediate loss of stock trading volume and more about where tokenized market infrastructure develops first (not to mention retail attention, capital & talent and issuer & exchange competition). The U.S. now gives firms a five year window to build venues, liquidity, custody and investor products around real listed shares. If that attracts developers, capital and users, Canadian exchanges and fintechs could end up adopting models proven elsewhere rather than building them first at home.
Talking Point
If tokenized shares can keep the same shareholder rights while using different trading, custody and settlement infrastructure, which parts of today's capital markets stack will still earn their place in the future?
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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QCAD Goes Live on Arc With 24/7 Onchain Settlement
September 17, 2026 | NCFA Market Activity | Digital Assets Blockchain And Tokenization, Payments Infrastructure And Money Movement, Cross Border Payments And FX, Regulation And Policy
Canadian Dollar Stablecoin Adds Live QCAD and USDC Settlement
On September 16, 2026, Stablecorp announced that QCAD is live on Arc, moving a Canadian dollar stablecoin that Stablecorp previously tested with Circle's StableFX infrastructure into production. Arc is Circle's blockchain for financial markets, while StableFX provides an institutional foreign exchange layer where supported stablecoins can trade and settle onchain.
For Canadian fintechs, payment companies and treasury teams, QCAD now provides a Canadian dollar route into that infrastructure. Once Canadian dollars are represented as QCAD, eligible institutions can transfer the value on Arc and exchange QCAD against USDC through StableFX without waiting for a conventional foreign exchange desk to open. Circle lists QCAD among the local stablecoins supported by StableFX, with USDC providing access to a much larger pool of digital U.S. dollar liquidity.
QCAD Digital Trust issues the token, while Stablecorp Digital Currencies acts as administrator and servicer. Stablecorp says each QCAD is backed one for one by Canadian dollar reserves held at regulated financial institutions, with daily reserve reporting and independent monthly attestations. The product currently targets institutional users rather than direct retail distribution.
What Actually Runs Around the Clock
StableFX combines a request for quote process with payment versus payment settlement on Arc. An institution requests an exchange rate, accepts a quote and funds its side of the trade. The counterparty funds the other side, and the smart contract completes settlement when both obligations are ready. Either both sides settle or neither does, reducing the risk that one party delivers funds while the other does not.
Circle says this onchain settlement layer operates 24 hours a day, seven days a week, including weekends and holidays. Settlement can occur near instantly once both sides are funded, although timing still depends on network conditions and counterparties being ready to complete the trade.
Circle provides the StableFX infrastructure and access to USDC liquidity, while Stablecorp controls QCAD minting and redemption through its own banking and authorized participant arrangements. Getting Canadian dollars into QCAD or redeeming QCAD back into a bank account can therefore depend on those institutions even when QCAD and USDC can continue settling onchain.
A business shouldn't read 24/7 settlement as 24/7 access to every Canadian bank account. The continuous part begins once value is already represented as QCAD or another supported stablecoin. A payment company holding USDC could exchange into QCAD when it needs Canadian dollar liquidity, while a treasury team holding QCAD could settle into USDC outside normal foreign exchange hours without requiring a conventional correspondent bank for that onchain exchange.
See: Are Stablecoins Becoming Payment Infrastructure?
Those capabilities can reduce some settlement delays and the need to maintain separate foreign exchange relationships for every currency pair. They don't remove banking, custody, compliance or redemption requirements. The commercial benefit depends on how much of a company's payment or treasury workflow can remain in tokenized form before money needs to return to a conventional bank account.
QCAD Enters a More Regulated Canadian Market
QCAD operates today under Canada's existing regulatory structure rather than the new federal stablecoin rules that are still being implemented. QCAD Digital Trust has an approved prospectus under the Canadian Securities Administrators' interim framework for value referenced crypto assets. Stablecorp Digital Currencies is also registered with the Financial Transactions and Reports Analysis Centre of Canada, or FINTRAC, as a money services business.
Canada has enacted the Stablecoin Act, but its main operating requirements aren't yet in force. The federal government expects the framework to take effect in 2027 after supporting regulations are completed. Under the new system, nonbank issuers of fiat backed stablecoins will register with and be supervised by the Bank of Canada, maintain reserves equal to at least the value of stablecoins issued, provide redemption at par and meet governance, risk, data security and disclosure requirements.
The Canadian stablecoin framework also operates alongside payments rules, anti money laundering requirements and securities regulation. QCAD's presence on Arc therefore changes where Canadian dollar digital value can settle, but it doesn't remove the issuer, custody, payments and financial crime obligations around the product.
Canada is also developing digital money inside banks. On September 10, the Office of the Superintendent of Financial Institutions clarified that tokenized bank deposits remain deposits in law even when technology changes how the deposit is represented or transferred. QCAD connects Canadian dollar value to public blockchain settlement through a separately backed token, while a tokenized deposit remains a liability of the bank. Both can support digital settlement through different legal and operational structures.
TD is already involved across several of these models. Stablecorp selected TD in July to become a primary custodian of QCAD reserve assets, while TD is also involved with tokenized deposits and has joined the 21 institution stablecoin venture with Scotiabank that targets a U.S. dollar product in 2027. The products aren't direct competitors today, but their development shows that Canadian financial institutions are testing several ways to connect deposits, stablecoins and blockchain settlement.
Liquidity and Usage Will Decide Whether QCAD Scales
USDC gives QCAD a useful liquidity route because institutions can exchange between the two without needing a separate market for every currency pair.
For example, an eligible Canadian payment company that already holds USDC could exchange some of it for QCAD through StableFX when it needs Canadian dollar digital value for local settlement. If it later needs Canadian dollars in a bank account, it would still use Stablecorp's redemption and banking arrangements.
For QCAD to become widely used, businesses need reliable ways to buy it, redeem it at par, hold it securely and connect it to the payment and treasury systems they already use. QCAD now has the technical route into Arc and StableFX.
Talking Point
QCAD now connects Canadian dollar digital value to global stablecoin liquidity while banks develop tokenized deposits and new stablecoin structures of their own. If several forms of digital Canadian dollar value can coexist, which model will make liquidity, redemption and distribution easiest enough for businesses to use every day?
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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U.S. Senate Fails to Advance CLARITY Act 49 to 50
September 16, 2026 | NCFA Market Activity | Digital Assets Blockchain And Tokenization, Regulation And Policy, Competition And Market Structure
Ethics and Stablecoin Rules Complicate U.S. Crypto Bill
On September 15, 2026, the U.S. Senate failed to advance the CLARITY Act by 49 votes to 50, with one senator not voting. This wasn't a vote on final passage of H.R. 3633, the Digital Asset Market Clarity Act. Senators were deciding whether the threshold of 60 votes needed to bring the legislation forward for Senate consideration, or not.
The official roll call lists Republicans Susan Collins, Josh Hawley, Jerry Moran and Thom Tillis among the 50 nays. Tillis changed his vote for procedural reasons and entered a motion to reconsider, preserving a way for the Senate to revisit cloture. Chris Coons of Delaware was the only senator recorded as not voting.
CLARITY would create a federal market structure for digital assets and draw clearer lines between the U.S. Securities and Exchange Commission and Commodity Futures Trading Commission. By the time the bill reached this procedural vote, negotiations also covered political ethics, decentralized finance and whether stablecoin rewards could compete too directly with bank deposits.
Why CLARITY Fell Short of 60 Votes
Political ethics became the clearest documented barrier to Democratic support. On September 14, Republican sponsors released a final CLARITY Act draft that they said incorporated 126 substantive changes requested by Democrats. The revised text also adopted much of an ethics proposal developed by Tillis and Democratic Senator Ruben Gallego, including a role for state attorneys general in enforcement.
Democrats said the protections still didn't go far enough. In his Gallego CLARITY statement, Gallego said bipartisan negotiations was making progress on ethics before Republican leadership called the vote. Senate Banking Committee Ranking Member Elizabeth Warren argued in her Warren CLARITY remarks that the bill still failed to address conflicts involving President Donald Trump's crypto interests adequately. Republican sponsors disputed that assessment and said they had already incorporated extensive Democratic requests.
The banking fight was different. Banks and digital asset firms disagree over how far payment stablecoins should be allowed to offer rewards that function economically like interest. If consumers transfer money from bank accounts into stablecoin products because the return is more attractive, banks argue they could lose deposits used to fund mortgages, small business credit and other lending.
Banking groups said the Senate draft still left room for interest like incentives tied to stablecoin balances, duration or tenure. They also objected to proposed stablecoin deposit safeguards that could allow Treasury action after payment stablecoins had already caused a substantial detrimental impact on community banks. Their concern is intervention after meaningful deposit losses may come too late to protect lending capacity.
How large that risk could become remains disputed. The White House Council of Economic Advisers published a stablecoin lending estimate suggesting that a full prohibition on yield would increase U.S. bank lending by about US$2.1 billion under its baseline assumptions, including roughly US$500 million at community banks. Banking groups have cited much larger estimates using different assumptions about stablecoin adoption, reserve flows and deposit substitution.
Stablecoins raise questions about competition as well as a crypto regulation. A digital dollar that can be held, transferred and rewarded can compete for customer balances that would otherwise remain inside banks. Rules governing stablecoin returns can affect funding costs, lending capacity and who controls the customer relationship.
Canada has already chosen a different approach on yield. The Canadian stablecoin framework prohibits stablecoin issuers from paying interest or yield while requiring reserves equal to the value issued and redemption at face value. That alone doesn't eliminate competition between deposits and digital money, but it removes one of the incentives at the centre of the U.S. banking dispute.
CLARITY Is Stalled, With Negotiations Still Open
While the bill isn't dead, the September 15 vote leaves H.R. 3633 stalled before full Senate consideration. Tillis's procedural vote preserved reconsideration, while the Blockchain Association response said the industry group would keep working with both parties and pointed specifically to the reconsideration motion as a route back to the legislation.
As of September 16, no new CLARITY vote had been placed on the Senate floor schedule. Senate Banking Committee Chairman Tim Scott said the SEC and CFTC should continue developing digital asset rules under their existing authority while Congress works on legislation. Founders, exchanges and investors therefore still have to follow agency rulemaking while the statutory division of authority is still unsettled.
Canada is working through some of the same product boundaries under a different regulatory structure. Finance Canada says the Canadian stablecoin framework has received Royal Assent, with regulations being developed ahead of expected implementation in 2027. On September 10, the Office of the Superintendent of Financial Institutions also clarified that tokenized bank deposits remain deposits in law even when the technology used to represent them changes.
That guidance affects how Canadian financial firms build digital money products. A tokenized bank deposit remains part of a bank's balance sheet and funding model, while a fiat backed stablecoin issued outside a bank is a separate claim backed by reserve assets. Both can compete for payment, treasury and customer balance uses, but their economics and regulatory obligations differ.
Three Market Developments to Watch
- The SEC is advancing crypto fundraising rules covering offerings of up to US$5 million and US$75 million while Congress continues debating market structure
- Wells Fargo plans to offer corporate clients tokenized commercial deposits, adding another regulated bank model for digital settlement
- Canadian and international banks are developing stablecoin and tokenized money products while governments decide how those products should compete with conventional deposits
If CLARITY returns to the Senate floor, changing the boundary between the SEC and CFTC alone won't resolve the coalition problem exposed by the 49 to 50 vote. Lawmakers still have to find common ground on political ethics and decide how far stablecoin rewards can go before they become deposit like competition for banks.
Those choices and their outcomes directly impact fintech business models. Stablecoin yield affects customer acquisition and funding economics. SEC and CFTC jurisdiction can alter registration, trading and capital raising requirements. Political ethics provisions may be separate from product design, yet the September vote shows they can determine whether the legislation reaches full Senate consideration at all.
Talking Point
CLARITY was designed to clarify who regulates U.S. digital assets, but the Senate vote exposed a larger commercial question. If stablecoins compete with bank deposits while crypto legislation also raises unresolved political ethics concerns, how much of digital asset market structure can Congress settle without also deciding who gets to compete for money, credit and financial influence?
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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Stablecoin Companies Are Buying Their Way Into Local Banking, Here Is What It Means for High Risk Merchants
Sep 16, 2026
Stablecoins are moving deeper into commercial payment infrastructure. Circle’s agreement to acquire Tazapay provides a useful measure of that progress.
Announced on September 8, the transaction would bring more than 60 banking and fintech partners and local payout coverage across over 100 markets into Circle’s network. Tazapay processes more than US$25 billion in annualized payment volume, with stablecoins already involved in approximately 60% of that activity.
The proposed acquisition remains subject to regulatory approval and is expected to close in 2027. Its structure still says something important about the direction of the market. Stablecoin companies are investing in local banking connections, foreign exchange, compliance and payout capacity. Those are the operational components required to turn digital dollars into a usable settlement network.
The development has particular relevance for higher-risk merchants. These businesses frequently encounter restrictions that have little to do with their immediate ability to make a sale. Cross-border settlement, limited acquiring coverage, currency conversion and abrupt changes in bank risk appetite can all affect whether revenue reaches the merchant reliably.
Stablecoin settlement offers another route for moving funds through that environment. Its value depends on understanding which part of the payment process it actually changes.
Acceptance and settlement solve different problems
A payment begins with the customer and ends when the merchant can use the proceeds. Several companies may participate between those two points.
The customer may pay through a card, bank transfer or local payment method. An acquiring institution authorizes and processes the transaction. A processor or gateway sends the relevant information between the merchant and the financial institutions. Settlement then delivers the merchant’s funds, subject to fees, reserves, refunds and other contractual terms.
A stablecoin can be introduced near the end of this sequence. The customer may continue paying in conventional currency while the merchant receives USDC or another digital asset. In other arrangements, stablecoins are used between financial institutions and converted into local currency before the final payout.
This distinction is essential for high-risk merchants. Stablecoin settlement can improve the movement of funds after a transaction has been approved. Card acceptance still requires an acquiring relationship capable of supporting the merchant’s industry, geography and transaction profile.
Chargebacks also remain part of card-funded transactions. Converting settlement proceeds into a stablecoin does not remove the consumer’s dispute rights or the merchant’s obligations to the acquiring bank. Reserves and delayed funding may still apply when the underlying transaction carries elevated exposure.
Merchants should therefore identify the exact role played by each provider. The most important questions concern who acquires the card transaction, who holds the merchant agreement, who manages disputes and which institution controls settlement.
Why high-risk merchants are interested
Settlement friction is expensive. A merchant operating across several countries may receive funds in multiple currencies, wait through local banking hours and pay for several conversions before the money reaches its operating account.
Stablecoin rails can shorten parts of that process. Digital assets can move outside conventional banking hours, and a merchant may hold settlement proceeds in a dollar-denominated instrument before deciding when and where to convert them.
That flexibility can be useful for businesses paying international suppliers, contractors or service providers. It may also simplify treasury operations when sales and expenses occur in different jurisdictions.
See: Canada Stablecoin Regulations Guide
Tazapay illustrates the infrastructure required to make the model practical. The company combines collections, virtual accounts, foreign exchange, stablecoin conversion and local payouts. Its network connects stablecoin liquidity with domestic payment rails, allowing recipients to receive the currency and payment method used in their local market.
The Canadian connection is direct. Tazapay states that its stablecoin services are provided through Tazapay Canada Corp., a money services business registered with FINTRAC. The entity facilitates stablecoin payments and conversions within the relevant regulatory framework.
This type of structure gives merchants access to digital settlement while preserving connections to regulated fiat entry and exit points. The quality of those connections determines whether stablecoin settlement can support routine commerce at scale.
The commercial terms require close review
Speed attracts attention, but the economics deserve equal scrutiny.
A merchant may pay a processing fee for the customer transaction, a conversion spread when funds move between fiat and stablecoins, network fees for on-chain transfers and another conversion charge when the stablecoin is exchanged into local currency. Some providers combine these costs into one rate; others price each stage separately.
The settlement promise also needs definition. “Instant settlement” may describe the movement of a stablecoin into a wallet after the provider releases the funds. It may exclude the underwriting period, reserve requirements or time needed to convert the asset into a bank deposit.
Custody creates another decision. Merchants receiving stablecoins into a self-controlled wallet assume responsibility for wallet security, access credentials and transaction approvals. Custodial providers manage some of those functions but introduce counterparty and access risk.
Accounting and reconciliation should be designed before launch. Finance teams need to connect the original customer payment with processing fees, conversion rates, blockchain transactions, refunds and the final value received. A faster rail provides limited operational benefit when the company cannot reconcile it accurately.
Merchants should also consider the stablecoin itself. Reserve quality, redemption arrangements, issuer regulation and available liquidity affect the reliability of the settlement asset. A token designed to maintain a one-dollar value still carries issuer, operational and market risks that should appear in treasury policy.
Underwriting remains central
Higher-risk merchants sometimes approach alternative settlement after losing a conventional processor. That sequence can encourage the assumption that a different rail will resolve the underlying account problem.
Acquirers and payment providers continue to examine the product, customer base, marketing, fulfilment, ownership and regulatory position of the business. Stablecoin providers also conduct customer due diligence, transaction monitoring and sanctions screening.
Merchant-account specialists such as CERF Payment Solutions work across this boundary, helping regulated and specialty businesses identify acquiring and settlement arrangements suited to their operating profile. Approval and commercial terms remain subject to the financial institutions providing the service.
For merchants, transparency is therefore commercially useful. The application should accurately describe the product, expected volume, transaction geography, refund exposure and intended settlement flow. Wallet ownership and conversion arrangements should also be documented.
A business using card acceptance with stablecoin settlement needs a coordinated procedure for refunds and chargebacks. Treasury teams must retain enough accessible liquidity to meet those obligations even when settlement proceeds have moved to another wallet, currency or jurisdiction.
Stablecoin settlement can strengthen a payment structure when these responsibilities are clear. It can reduce payout delays, extend operating hours and improve control over cross-border liquidity. The benefits arise from better infrastructure and sound implementation.
Circle’s planned Tazapay acquisition shows how quickly that infrastructure is developing. Stablecoin networks are acquiring the banking relationships, licences, integrations and local payout capacity required for commercial use.
High-risk merchants will remain subject to careful underwriting. They will also have a wider range of settlement options. The companies that understand both sides of the transaction will be best placed to use those options effectively.
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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