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 Regulations
Trump Issues Binance Founder CZ Full Unconditional Pardon
Crypto | Oct 24, 2025
Image courtesy of AI
Full Pardon of Binance Founder, Restoring CZ’s Legal Standing
On October 23, 2025, as reported by AP News U.S. President Donald Trump issued a full and unconditional pardon to Changpeng Zhao, a Canadian citizen and founder of Binance, the world’s largest crypto exchange. The decision cleared Zhao’s 2023 conviction under U.S. anti–money laundering and sanctions laws.
According to the White House, Trump “exercised his constitutional authority” to issue the pardon, describing Zhao’s prosecution as part of “the Biden Administration’s war on cryptocurrency.” The news arrived amid a record Bitcoin record high above $120,000 earlier in July, showing renewed investor optimism in the digital asset market.
Regulatory Clarity and Competition
The pardon comes as global regulators assess how to balance enforcement with innovation. For Canadian fintechs, it raises questions about regulatory predictability and competitiveness. Under the current U.S. administration, regulatory enforcement appears more forgiving toward large crypto platforms, which could influence global investment decisions.
See: Crypto Finance Finding Scale and Clarity in 2025
In Canada, regulators fined Binance $6 million CAD for anti–money laundering violations and Binance compliance failures in Canada.
The pardon reintroduces uncertainty over how enforcement consistency (or inconsistency) impacts capital allocation and market trust. Transparent, consistent oversight is still vital to sustaining trust and access to global markets.
CZ's Reaction and Canadian Connection
Zhao’s Canadian citizenship links Canada directly to one of the most influential figures in crypto. After serving nearly four months in prison and paying a $50 million fine, Zhao retained his stake in Binance while appointing Richard Teng as CEO.
In a statement, Zhao said he was “deeply grateful for today’s pardon and to President Trump for upholding America’s commitment to fairness, innovation, and justice,” adding that he would “do everything we can to help make America the Capital of Crypto.”
As the perceived regulatory risk lowers in the U.S. due to regulatory clarity, there's renewed optimism among institutional investors. For Canadian investors, a more predictable U.S. outlook could improve confidence in cross-border partnerships if compliance frameworks remain strong.
See: Canadian Investors Lead Class Action Against Binance Canada
With the pardon now in place, Binance may renew expansion in the U.S. under current CEO Richard Teng who has emphasized compliance, transparency, and rebuilding trust with regulators worldwide. Analysts note that the pardon “could pave the way for the firm’s return and reintegration into the American market.”
Outlook
The Trump pardon of Changpeng Zhao is another key moment in the global crypto narrative. For Canada, it highlights the importance of credible, consistent oversight as markets respond to pro-crypto U.S. policy signals. Renewed institutional attention to digital assets could open doors for compliant fintechs, but long-term success will depend on maintaining transparency, sound governance, and global coordination.
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 aa 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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CSA Reminds Crypto-backed Lenders of Securities Law Duties
Crypto Regulation | Oct 23, 2025
Image: Freepik
Canadian Regulators Caution Crypto-backed Lending Platforms
The Canadian Securities Administrators (CSA) issued a reminder to platforms offering loans secured by crypto assets that their operations may fall under securities law and that investors should confirm registration or exemptive relief before doing business, setting the tone for how the regulators see the market operating in Canada.
The CSA says it is already engaging with platforms that let borrowers use crypto as collateral. Collateral usually exceeds the loan amount and is transferred to the platform. Depending on the business model, that activity can count as trading or a distribution of securities, triggering registration and prospectus obligations into play.
See: CSA Proposes $50K Harmonized Self Certified Investor Exemption
Operating without registration or relief can expose customers to weak safeguards over collateral and poor disclosure of loan terms. Investors should protect themselves by checking the list of crypto firms authorized to do business with Canadians. One example of a registered crypto-backled lending platform that received exemptive relief on April 1, 2025 is APX Inc.
Advised to Work with Securities Regulators
If a firm offers or plans to offer crypto collateralized loans, the CSA expects early contact with regulators. Firms can use the CSA Financial Innovation Hub to test ideas inside the regulatory framework and to understand whether exemptions fit their model.
The CSA's caution is blunt. Avoid the gray zone. Engage, document controls, and be clear with customers. Firms that ignore this process risk violating securities law and facing action.
Customers should ask how collateral is held, what happens on default, and whether the platform is registered or operating under relief. Yield is only part of the story. Safeguards and disclosure matter more when assets move off your wallet and onto a platform’s balance sheet.
Crypto Lending Rules Diverge
Regulators around the world share the same goal of protecting investors in crypto lending markets, but they’re taking different routes to get there. A few jurisdictional examples below.
See: Takeaways from the SEC’s Crypto Custody Roundtable
Canada
Canadian regulators say loans backed by crypto can sometimes fall under existing securities laws. If a platform takes custody of assets or offers returns tied to their value, it likely needs to register or obtain exemptive relief. This is not a new classification but an application of existing securities law to a new asset form.
United States
In 2022, the U.S. Securities and Exchange Commission fined BlockFi $100 million and told the firm to register after finding its crypto interest accounts were deemed unregistered securities. Since that decision, U.S. regulators have generally treated crypto lending programs that reuse client assets as securities offerings requiring registration and disclosure.
United Kingdom
The Financial Conduct Authority has said that firms offering crypto-backed loans may come under its consumer credit or investment activity rules if they handle client assets or promote these products to the public. It also warns that companies paying interest on crypto must register under the Money Laundering Regulations or stop serving retail users.
Conclusion
To reduce legal risk, map the business model against securities triggers, document custody and collateral controls, and prepare clear disclosures that customers can understand. Engage early with regulators to confirm registration or to request exemptive relief.
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 aa 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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Ethereum Bot Heist Trial Exposes $25M Scheme
Crypto | Oct 16, 2025
Image: Pixabay/Ashley Jackson
Peraire-Bueno Trial Reveals Hidden Risks in Ethereum MEV Trading and Unclear Legal Limits
On October 15, 2025, Bloomberg News reported that Massachusetts Institute of Technology graduates James and Anton Peraire-Bueno are on trial in Manhattan for allegedly stealing about US $25 million from Ethereum traders using a complex Maximal Extractable Value (MEV) strategy.
The case could have significance in how U.S. law treats algorithmic blockchain activity in the future. The brothers have pleaded not guilty, arguing that their actions were lawful in an unregulated market and that their alleged victims used similar tactics.
Sandwiching Strategy
Prosecutors said in April 2023 the Peraire-Bueno brothers created bait transactions to lure automated trading bots that use a practice called sandwiching. A sandwich attack happens when a bot places a buy order before and a sell order after a large user transaction, capturing a profit while driving up the price. Though widely criticized as manipulative, sandwiching is not illegal.
See: OSC Crypto Trading Platform Compliance Review Findings
According to prosecutors, the brothers learned how to exploit a flaw in MEV Boost (open-source Ethereum software) to see and rearrange transactions before they were confirmed. By using this access, they allegedly turned the tables on the bots and redirected millions of dollars to their own accounts. Prosecutors called the act a “high-speed bait and switch” and said the brothers’ goal was to rip people off.
How the Defense Sees It
Defense lawyers for the brothers argue that the Peraire-Buenos simply outsmarted the bots in a free and open market. They described the strategy as “wildly successful” but legitimate within the competitive crypto space. The defense says the funds were voluntarily traded away by the bots and that the prosecution’s decision to side with their main alleged victim, Savannah Technologies, doesn't mean a crime occurred.
An Israeli crypto trading firm Savannah claims it lost US $13 million when its bots were targeted. Its CEO David Yakira is expected to testify per Bloomberg's trial coverage and also reflected in the case docket. The rest of the missing US $12 million was from unidentified traders.
A Divided Crypto Community
The case has divided developers, traders, and researchers. Ethereum Foundation researcher Dankrad Feist said “stealing from a thief is still theft,” referring to sandwich attackers. Others in the community argue that what the brothers did was a fair play in a secretive, high speed ecosystem with no established rules.
See: Quebec Decision Challenges Canada’s Crypto Rules
Matt Cutler CEO of Blocknative, said the brothers “tricked someone into doing a sandwich that should have been safe by the rules of the network.” He mentioned that it was a bug in the software that made it unsafe, highlighting how fragile some blockchain systems can be when technical flaws meet trading incentives.
Why It Matters
The Peraire-Bueno trial is being watched closely across the fintech and blockchain sectors because it will test whether exploiting code vulnerabilities amounts to fraud. It also raises the question of how far traditional legal concepts like intent and theft can stretch into decentralized and automated markets. The outcome could establish a new precedent for the future of decentralized finance and blockchain governance, where innovation and regulation often collide.
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 aa 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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Quebec Decision Challenges Canada’s Crypto Rules
Crypto Asset Policy | Oct 15, 2025
Image: Freepik AI
Quebec Tribunal Ruling Challenging One-Size-Fits-All Crypto Regulations
In August 2025, Quebec’s Financial Markets Administrative Tribunal issued its decision in AMF v. Gagnon et al. that examined whether tokens linked to a crypto trading signal subscription service were investment contracts under Quebec’s Securities Act or not. The respondents ran an online business that sold memberships through social media and a Telegram group, offering automated buy and sell recommendations for digital currencies such as bitcoin. Investors paid recurring fees to receive trading alerts and access private chat rooms.
See: Canada’s Stablecoin Race Enters Critical Phase
The tribunal found that the respondents misled subscribers and exaggerated claims about profit potential without proper registration. However, it also ruled that the tokens and the trading signals themselves weren't securities. Investors acted independently (i.e., placing their own trades), and there was no pooling of funds or shared enterprise that would meet the legal test for an investment contract in Quebec.
It's an important ruling because it draws a clear line between activities that require securities registration and those that do not. The decision has prompted discussion across Canada about how regulators should evaluate crypto asset business models (subscription required).
Decision Rooted In Economic Reality
The tribunal focused on how the Gagnon business actually worked, not how the business is described or the types of tokens involved. The respondents sold subscriptions to a crypto signal service through social media and Telegram. Members paid recurring fees (usually in crypto) to access automated trading alerts and private discussion groups. The tribunal found that subscribers of the service acted independently because they placed their own trades, used their own accounts, and there was no pooling of funds or shared enterprise.
Because the respondents did not issue tokens, manage capital, or control investor profits, the activity did not meet the legal test for an investment contract. The tribunal said speculation alone does not make a trading service or token a security.
See: How Competition Powers Canada’s Economic Growth
David Durand, Founder Durand Lawyers and NCFA Advisor, was interviewed for the Law360 article on legal classification of crypto assets, who argued that each crypto asset and business model must be assessed on its economic reality, not through one universal rule.
“The fact that securities regulations would have scant effect in protecting users on decentralized networks makes it evident that defining crypto assets as a security would provide ineffective regulatory enforcement in this respect. "[Overreaching securities regulation on the crypto asset regime would] likely create a system where onerous requirements are placed on users of such assets, with an end result of suppressing innovation [in financial technology and financial capital to leave Canada seeking more favourable environments]."
“The important point here is that the tribunal says a crypto asset is not an investment contract. However, when we criticize the act of trading an asset, we are referring to the investment contract in relation to the person and not the object or the very nature of the crypto asset. The implications are that we are moving in the right direction in terms of the fact that crypto assets were not an investment contract.”
Implications Across Canada
Although the decision applies only in Quebec, its reasoning may influence regulators across Canada. The Canadian Securities Administrators have been moving toward coordinated rules for crypto trading platforms, but this ruling highlights the limits of the CSAs current approach when activities vary so widely in design.
The tribunal also said regulators need stronger evidence before using enforcement tools like freezing orders. It ruled that authorities must show clear proof before stopping a business from operating. This could set a new standard for fairness in future crypto cases.
See: Canada to Enforce Cryptoasset Reporting by 2027
For fintech founders, the ruling gives clearer guidance on what falls inside or outside securities law. Businesses that offer decentralized tools, such as trading signal services, software systems, or network platforms are less likely to be treated as securities, if users of those tools remain in control of their own money and avoid profit sharing and collective investment components.
For regulators, the case is a reminder to focus on real misconduct instead of labelling all crypto activity as securities by default.
Comparison with Ripple and MiCA
The Gagnon reasoning parallels the SEC v. Ripple Labs decision in the United States, where a U.S. court drew a line between tokens sold directly by a company and those traded later on the open market. The court said that how and where a token is sold makes a difference. When people buy directly from the issuer based on its efforts, the sale can fall under securities law, but trades between independent buyers and sellers on exchanges may not.
Europe’s Markets in Crypto-Assets (MiCA) regulation offers another useful example. MiCA builds specific legal categories for utility tokens, payment tokens, and asset-referenced tokens, instead of applying one framework to all.
Read: BIS Proposes Scoring Model for Crypto AML
Canada has yet to create a similar set of purpose-based rules, leaving courts and tribunals to fill the gaps through case law.
Strengthens NCFA's Call for a National Framework
The Quebec tribunal ruling strengthens NCFA's call for a coordinated national digital asset framework that distinguishes between token types and activities. Further, Canada can draw from both MiCA’s structured taxonomy and the functional reasoning used in Ripple and Gagnon. NCFA continues to recommend that policymakers should now focus on:
(1) developing a clear national digital asset taxonomy;
(2) designing safe harbours for compliant innovation;
(3) aligning oversight with international best practices and;
(4) concentrating enforcement on fraud and deception rather than classification disputes.
Canada Must Regulate for Growth
The Gagnon ruling challenges Canada’s regulatory system to evolve beyond the one-size-fits-all treatment of crypto assets. The tribunal recognized that each digital asset and business model carries distinct risks and economic activities.
One brush does not fit all. Crypto assets differ in structure, function, and purpose. Regulation must be designed for growth, not just enforcement. As NCFA recently argued in “Regulating for Growth by Understanding Innovation”, good regulation should reward experimentation, promote competition, and provide safe entry points for new entrants, not block innovators out of fear.
If Canada wants to compete in digital finance, it must build laws that reflect how crypto businesses actually work, support new ideas, and focus on misconduct, not label everything a security first.
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 aa 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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CZ Pardon Reports Stir White House Debate
CZ | Oct 14, 2025
Image: Freepik/wirestock
Reports of a Potential Trump Pardon for Former Binance CEO Changpeng Zhao
Changpeng Zhao (known as CZ) pleaded guilty in November 2023 to a single count of violating the Bank Secrecy Act after U.S. authorities found Binance had failed to maintain effective anti-money laundering controls. He stepped down as CEO and was sentenced in April 2024 to four months in federal prison while paying a $50 million fine. Binance also paid $4.3 billion to settle related charges with the Department of Justice and other agencies.
In May 2025, Zhao stated publicly that he had applied for a presidential pardon from Donald Trump. The U.S. Senate Banking Committee confirmed the filing’s existence in a letter dated May 15, 2025, asking the Department of Justice and the White House to clarify whether the request was being considered. The senators cited potential conflicts of interest tied to Trump family business ventures connected to crypto ventures associated with Binance.
New Update Heating Up
On October 10, 2025, journalist Charles Gasparino reported on X that White House discussions about a possible pardon were “heating up.” The New York Post followed with a story two days later describing alleged internal debates over optics as the Trump administration manages several crypto-related policy files.
The article references unnamed sources close to both Zhao and Trump, who claim the president is sympathetic to Zhao’s case but mindful of potential conflicts due to family business interests in the crypto sector.
See: Binance Gets $2B UAE While Trump Family Weighs Stake
No formal statement from the White House, the Department of Justice, Binance, or Zhao’s legal team has confirmed these discussions. The White House press office maintains a standard position of not commenting on active or potential pardons. Therefore, these claims remain based only on Gasparino's report and subsequent media coverage.
Why the Story Matters for Crypto Policy
Even without confirmation, the story matters because a pardon could erase Zhao’s criminal record, reopening the possibility for U.S. financial institutions to engage with Binance or its affiliates under less restrictive compliance terms.
It could also influence broader perceptions of how the U.S. balances enforcement with innovation across the $4 trillion global digital asset market. The Senate Banking Committee’s letter highlights bipartisan concern about transparency in how executive clemency intersects with crypto business interests, and spotlights growing concerns between pro-market reform vs accountability for compliance gaps in digital finance.
Current Outlook
As of October 14, 2025, verified information is limited to Zhao’s conviction, sentencing, fines, and his publicly acknowledged pardon petition. Otherwise, there is no public record or filing in the Office of the Pardon Attorney showing that any pardon has been granted or is under formal review.
See: Trump Proposes Ending Quarterly Company Reports
Until official confirmation appears, the case stands as a reminder that anonymous political reporting must be treated cautiously, especially if it could affect markets and trust in financial governance.
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 aa 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 Opens Door for DePIN Tokens with DoubleZero Ruling
Digital Asset Regulation | Oct 1, 2025
Image: Freepik
DoubleZero Ruling Letter Clarifies How Functional DePIN Tokens May Fall Outside Securities Law
On September 29, 2025, the U.S. Securities and Exchange Commission (SEC, Corporate Finance Division) issued a no action letter for DoubleZero that addresses how decentralized physical infrastructure networks (DePIN) should be treated under securities law.
See: US House Pushes Crypto Reform Forward with Key Bills
The SEC's staff concluded that tokens earned by providing infrastructure services did not need to be registered as securities. Commissioner Hester Peirce reinforced this position in a follow-up statement, where she described DePIN tokens as rewards for real work rather than investments reliant on others’ managerial efforts.
What is DePIN and Why It Matters for Blockchain Builders
DePIN refers to decentralized physical infrastructure networks where people contribute bandwidth, storage, mapping, or energy and receive tokens in return. These networks create open marketplaces for infrastructure and reduce reliance on centralized ownership.
Peirce (aka Crypto mom) described this approach as a new way to organize services using blockchain technology. She argued that tokens functioning as rewards for services are economically distinct from securities and that forcing all blockchain models into securities law could suppress innovation.
Features That Helped DoubleZero Get No-Action Relief
DoubleZero avoided the pitfalls of speculative fundraising from token sales marketed with profit expectations. Instead of pre-selling tokens to investors, its 2Z token was earned by participants who contributed infrastructure services, such as bandwidth, storage, and node operation.
See: SEC Exploring Ethereum Standard for Tokenized Securities
The SEC staff stated that it would not recommend enforcement if tokens were distributed under the programmatic model presented by counsel. The relief granted was narrow and applied only to the programmatic model where tokens were distributed automatically to contributors per present conditions.
The letter also made clear that different facts could lead to a different outcome. You can read DoubleZero's response to the no-action letter here.
Where Similar Reasoning Might Apply?
In the vein of avoiding token fundraising and keeping distributions tied to real services, networks that reward participants for sharing unused internet bandwidth, provide hard drive capacity, or feed energy into microgrids could potentially align with this reasoning. Other applications might include mapping and geospatial services, where users are rewarded for validated data contributions.
By contrast, projects that conduct presales or ICOs with promises of speculative returns, rely heavily on centralized managerial efforts, or direct most tokens to investors rather than active participants are less likely to qualify. The SEC emphasized that the economic reality must be compensation for work or services, not profit expectations.
Closing Thought
While Canada hasn't yet issued specific guidance for DePIN tokens, the DoubleZero letter offers a comparison that Canadian entrepreneurs and policymakers can evaluate when distinguishing between functional reward tokens and investment contracts.
See: SEC Clears Path for Fast Track Crypto ETFs
It's another clear acknowledgement from the SEC that not all tokens should be treated as securities. For builders, it shows how models tied to infrastructure participation can be designed to avoid speculative classification.
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 aa 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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Canada’s Stablecoin Race Enters Critical Phase
Stablecoin Research | Sep 23, 2025
Image: Stablecoin Survey Research Highlights (EY Parthenon Sep 2025)
EY-Parthenon Research: Corporates and Banks Eye Stablecoins for Cost Savings, Efficiency, and Competitive Edge
On September 15, 2025, EY-Parthenon released its latest stablecoin survey results, "Stablecoins: Adoption, Optimism, and Regulatory Clarity" (download 31 page PDF), covering 350 executives from corporates and financial institutions across the US, EMEA and other regions. Research takeaways confirm adoption is picking up speed, supposed by regulatory clarity by the GENIUS Act, recently signed into law.
Stablecoin Adoption Gains Momentum
- 13% of organizations have already used stablecoins
- 23% of financial institutions
- 8% of corporates
- Professional services leads current usage at 23% followed by financial services at 21% and technology at 17%
- Among non-users, 54% expect to adopt stablecoins within six to twelve months
See: Amazon and Walmart Exploring Merchant-Led Stablecoins
Why is this happening? Approval of the U.S. GENIUS Act is a regulatory catalyst. Further, pilots are proving real value and corporate treasurers are under pressure to improve efficiency. The thinking is that organizations delaying adoption risk losing ground to competitors who are moving forward and benefiting from the lower cost and faster transactions of stablecoin technologies.
Cost Savings Strengthen Use Case
- 41% of corporates already using stablecoins report more than 10% savings on cross border transactions
- 67% of professional services firms report saving between 10% and 20%
- Mid sized companies between $500M USD and $1B USD in revenue report savings of 10% to 20%
- Almost three quarters of corporates expect to realize savings of at least 10%
Why is everyone saving money by using stablecoins? The reason is straightforward. Traditional cross border payments involve multiple intermediaries, each adding fees and time. Stablecoins bypass these frictions and settles instantly, so the cost savings are structural (not incremental). For fintech providers, there's a growing opportunity to provide integration and risk management tools to help corporates adopt/use stablecoins and measure their effectiveness.
Cross Border Payments Most Popular Use Case
- 62% use stablecoins to pay suppliers and 53% accept cross border payments from partners
- 77% of corporate users rank paying suppliers ranks as the top use case, followed by 52% cheaper transaction costs, 45% faster settlement times, and 34% indicate 24 hour liquidity
- Consumer adoption is also gaining traction with 44% of users already accepting customer payments in stablecoins
See: VoPay Unlocks Real-Time Wallet Payouts and Global Reach
The reality is that we live and function in a global economy where delays can disrupt supply chains, so it's not surprising that corporates will adopt stablecoins for faster and more streamlined and predictable settlement solutions. This means that stablecoin adoption will likely strong and swift among B2B supplier and trade finance flows before expanding more widely into consumer payments.
Regulation is the Biggest Barrier
- 73% of survey responders say that regulatory uncertainty is the leading concern (strongest in Asia at 81% and Europe at 79%)
- 38% cite accounting and tax clarity as the second barrier
- Limited banking support is also holding back adoption, especially in Europe where 51% of corporates identify it as a challenge
In Canada, regulatory inaction is catching up with market momentum. On September 19, 2025, regulators like OSFI have warned the Prime Minister Mark Carney that Canada should accelerate federal stablecoin rules to avoid falling behind global peers. The Bank of Canada has echoed this call, saying stablecoins should be as safe and stable as the balance in your bank account. OSFI is already drafting a new framework to regulate stablecoin issuers, while domestic momentum is building as Tetra Digital Group secured $10M from Canadian banks and fintechs to launch a CAD stablecoin in 2026. Observers including investor John Ruffolo warn in his Looming Stablecoin Storm substack that without clear domestic rules, Canada risks ceding innovation, competitiveness and monetary sovereignty to jurisdictions that move faster.
See: Stablecoins Are Growing Faster Than You Think
Canadian corporates and fintechs need to plan not just for current global trends, but for a new local regulatory stablecoin framework. Firms are advised to engage with policymakers to create the right environment, build compliance ready infrastructure now and position for interoperability with USD pegged tokens and domestic stablecoin initiatives.Waiting could result in higher compliance costs, restricted access, and eventually a decline in market share.
Banks and Financial Institutions Preparing to Scale
- Only 15% of financial institutions currently offer stablecoin services but 57% are actively exploring entry
- The top planned offerings are on and off ramps and wallet infrastructure, each at 56%. Nearly half plan to monetize through transaction based fees
- By 2030 financial institutions expect stablecoins to account for between 5% and 10% of global payments, representing approx $2.1T USD and $4.2T USD annually
Bottom line is banks understand that clients will demand stablecoin services and that failure to provide them risks their disintermediation. There's an intensifying race between traditional institutions and fintech challengers to capture stablecoin transaction flows.
Integration Challenges Will Drive Partnerships
- 41% of corporates believe they can integrate stablecoins with moderate effort while 36% expect major systems changes
- About 70% say they would be more willing to adopt if stablecoins were integrated directly into ERP systems
- Corporates prefer to adopt through their existing banks, with 63% identifying financial partners as their preferred channel and 68% citing banks as their preferred issuers
- On the institutional side 79% plan to rely on third parties for infrastructure
See: Stablecoin Payments Have Wings – Are You Ready?
Hybrid build and partner strategy. Corporates are demanding trust and compliance, while financial institutions know they cannot deliver the full stack alone. This means that partnerships between fintechs, banks and technology providers will determine how quickly stablecoin adoption scales.
Outlook
Stablecoins are moving from pilot projects into enterprise strategy. Corporates see real cost savings and competitive advantage, while financial institutions are preparing to build services at scale to meet client demand. Regulation is beginning to catch up, led by the GENIUS Act in the US, but the global landscape is unbalanced while Canada’s fintech ecosystem is calling on the federal government to create and regulate a stablecoin framework to remain aligned and competitive.
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 aa 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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