Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Voices
US Crypto Rules To Clarify Onshore Market Structure
Mar 5, 2026 | NCFA Fintech Market Insight | Digital Assets And Policy And Regulation
Tokenized Collateral Perpetuals And Event Contracts Get Rules
On January 29 2026, at the joint SEC CFTC event in Washington titled CFTC SEC Harmonization U.S. Financial Leadership in the Crypto Era.
CFTC Chair Michael S. Selig’s remarks laid out a detailed US policy direction for crypto market structure. The speech goes past broad support for innovation and points to specific rule work on tokenized collateral, perpetual derivatives, software safe harbours, retail leveraged crypto trading, and event contracts.
SEC Chair Paul S. Atkins’ remarks support the same direction from the SEC side, which is part Project Crypto.
“Fragmented regulation in an integrated market is not a safeguard for investors so much as a source of confusion among them.”
That line from Atkins defines the problem. Unclear boundaries change how firms structure products, where they launch, and how much they spend on compliance before they can scale.
“Project Crypto recognizes that crypto markets span across our agencies’ respective regulatory boundaries.”
Selig starts from the point that crypto products don't fit neatly into older lines between agencies. Clearer lines are needed to cut the cost of operating in uncertainty.
1. Tokenized Collateral And Perpetuals Move Into The Rulebook
“I have directed CFTC staff to develop rules to enable the responsible deployment of additional forms of eligible tokenized collateral.”
Eligible collateral is what a trading venue accepts to back positions. It decides how much margin traders need, how fast funds move, and how safely trades settle. If the CFTC allows more tokenized assets to count as eligible collateral, more crypto trading can happen inside regulated U.S. markets, but custody and collateral movement will need tighter controls and clearer proof that assets are protected and available when they are needed.
“The CFTC will use the tools at its disposal to onshore perpetual and other novel derivative products so that they can flourish across both centralized and decentralized markets, subject to appropriate safeguards.”
Perpetuals are a popular kind of crypto futures that many platforms offer outside the U.S. If U.S. rules start allowing them in a regulated way, more trading, market making, and new product builds can move onshore. That would also make it harder for offshore exchanges to keep growing just because the U.S. has no clear legal path today.
2. Software Builders And Multi Product Platforms Get A Clearer Path
“The CFTC will explore ways in which the agency can encourage innovation in software development and support builders as they work toward product market fit, including by assessing whether an innovation exemption may be appropriate in certain circumstances.”
This targets a hard issue in crypto regulation. Wallets, interfaces, and on chain software do not fit cleanly into rules built around centralized intermediaries. If the CFTC creates clearer room for software development and early stage testing, legal uncertainty will be reduced for teams building core infrastructure.
“As part of this harmonization effort, we will examine whether substituted compliance can achieve equivalent or better regulatory outcomes at lower costs for market participants.”
See: Atkins Testimony Targets IPO Burden And Crypto Rules
This is about cost, duplication, and speed. Overlapping requirements can turn compliance into a barrier to entry. Substituted compliance can cut repeated work where two regimes are trying to solve the same control problem.
“Within the bounds of the law and where appropriate, market participants should be able to offer multiple products through a single platform without navigating an inefficient patchwork of registrations and overlapping regulatory regimes.”
This points to a model where firms can run more of their product stack under one platform instead of splitting activity across separate legal and operational silos. That can improve operating leverage for exchanges, brokers, and infrastructure firms that want to offer more than one regulated product. Also see broader SEC direction in Atkins crypto rules testimony.
3. Retail Leveraged Crypto And Event Contracts (eg. Prediction Markets) Get A Reset
“I have directed CFTC staff to begin drafting rules clarifying when leveraged, margined, or financed retail commodity transactions in crypto may be offered off-exchange under an ‘actual delivery’ exception.”
Retail users can already get leveraged crypto in some places, but U.S. rules have left big gaps in what is clearly allowed. If the CFTC writes clearer rules, firms will know which leverage products they can offer, which ones are off limits, and what steps they must follow to stay compliant.
“I have directed CFTC staff to explore the creation of a new category of DCM registration that is tailored specifically to retail leveraged, margined, or financed crypto asset trading.”
This suggests the CFTC may create a new kind of regulated exchange category built specifically for retail leveraged crypto trading. If it does, firms will be able to design products and go to market using a clearer venue rulebook, and exchanges will compete on who can offer the best compliant access and distribution.
“First, I have directed CFTC staff to withdraw the 2024 event contracts rule proposal that would prohibit political and sports-related event contracts and the 2025 staff advisory.”
This removes a major source of uncertainty around prediction markets.
“Second, looking ahead, and in the spirit of markets that trade on expectations, I have directed CFTC staff to move forward with drafting an event contracts rulemaking.”
Withdrawing the old proposal reduces near term uncertainty, but new event contract regulations would spell out which event-based contracts are allowed, what monitoring and controls platforms must run, and how firms can build prediction style products without guessing where the line is.
What This Means For Builders And Investors
These speech commitments point to a practical attempt to aggregate more products, more liquidity, and more infrastructure into regulated US channels. Tokenized collateral, perpetuals, retail leveraged crypto, and event contracts are all in the spotlight with real market share potential. Companies that can meet the bar for custody, risk controls, disclosures, and auditable operations can begin building onshore products more confidentially than they could before.
Also, OCC Issues Rulemaking Notice for Stablecoin Issuance
The CFTC and SEC discussion focuses on market structure, but tokenized collateral and onshore crypto venues still rely on a settlement instrument that can hold up under supervision. That is why the stablecoin perimeter matters.
See: MiCA Vs UK Crypto Rules And Global Fintech Competition
On February 25, 2026, the OCC issued a notice of proposed rulemaking (See: OCC stablecoin NPRM) to implement the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act) for payment stablecoin issuance and related activities under OCC jurisdiction, including national banks and their subsidiaries, federal savings associations and their subsidiaries, federal branches and their subsidiaries, and foreign payment stablecoin issuers, along with entities approved as federal qualified payment stablecoin issuers and certain state qualified issuers. The OCC points to a new 12 CFR 15 that covers reserve assets, redemption, risk management, audits and supervision, custody, applications and registrations, examination of foreign issuers, and a capital and operational backstop.
Also, Congress Hits New Impasse On Stablecoin Rules
While the OCC moves ahead with rulemaking under the GENIUS Act, the legislative framework for crypto market structure is still contested in Washington. A Reuters report from March 5, 2026 on the crypto bill impasse in Congress describes renewed disagreement over stablecoin related customer rewards and whether they could draw deposits away from banks. The dispute shows that even as regulators move ahead with rules for trading infrastructure, tokenized collateral, and stablecoin issuance, Congress is still debating how far crypto firms should be allowed to compete with the traditional deposit system.
Talking Point
If the CFTC and SEC push tokenized collateral, perpetuals, and event contracts into regulated channels while the OCC pushes stablecoin issuance into a bank style rulebook, does the next U.S. advantage move to firms that can run both market structure and the cash leg under supervision?
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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Wealthsimple Wins Direct Swift Access For Global Wires
Mar 3, 2026 | NCFA Fintech Market Activity | Payments And Market Infrastructure
First Canadian Fintech On Core Traditional Global Payment Rails
On March 3 2026, Hanna Zaidi, VP Payments Strategy and COO of Wealthsimple announced on LinkedIn that Wealthsimple just became the first Canadian fintech to earn direct access to Swift, and the second non-bank fintech globally to gain direct access. The Globe and Mail reported that Wealthsimple will be offering cheaper international money transfers than larger Canadian competitors and a spring launch for the new service.
From reviewing WS's website, Wealthsimple wire fees lists CA$15 for outgoing CAD wires (US$15 for outgoing USD wires), while inbound wires will have no fee on Wealthsimple’s side. There's also a per transfer limit of up to CA$1,500,000 or US$1,500,000.
Swift membership rules explain why direct access is hard to secure. Applicants must qualify under Swift’s user categories and Swift's onboarding requires mandatory security controls and a security attestation before a new member can go live. Meaning WS earned a direct network membership milestone, not a reseller arrangement.
Swift's network scale connects 11,500+ institutions across 220+ countries and territories, handles 53 million+ FIN messages each day on average, and routes 75% of payments to destination banks within 10 minutes.
The table below highlights the price gap Wealthsimple is attacking, compared with TD fees and RBC fees for incoming/outgoing wire transfers which are more expensive. Wealthsimple enters the wire market below the published outgoing wire fees at both banks and below the published incoming wire fees in both schedules.
| Comparison | Wealthsimple | TD | RBC |
|---|---|---|---|
| Outgoing international wire | CA$15 CAD wire / US$15 USD wire | $50 | Starting at $45 |
| Incoming wire | $0 (WS's side) | $15 | Starting at $17 over $50 |
| Published transfer limit | Up to CA$1.5M / US$1.5M | Not stated in cited fee schedule | Not stated in cited fee page |
| SWIFT Access | Direct member access as a fintech | Direct bank member access | Direct bank member access |
The strategic value goes beyond a wire product though. In addition to direct Swift access, Wealthsimple has also earned direct participation in Payments Canada, Interac, and the Bank of Canada’s coming real time rail. That gives one non-bank platform direct reach across more of the domestic and global payment stack that sets pricing, speed, and settlement.
See: Stablecoin Data Shows Payments Reality Gap
For Canada, from a competitive perspective, when a fintech now has direct entry into the same global messaging network used for bank wires and is attaching a lower listed fee to that access, consumers benefit. That puts direct pressure on wire pricing and strengthens Wealthsimple’s position in cross-border money movement services.
Talking Point
When a non-bank fintech gets direct Swift access and lists lower wire fees than major banks, does the competitive edge move to firms that control the rail instead of firms that only package the service?
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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AI Ethics, State Power, And The Fight Over RedLines
March 2 2026 | Feature | AI Governance And Public Safety
AI Image: Conceptual illustration of AI ethics, defense contracts, and public accountability
Anthropic’s Limits And OpenAI’s Defense Bet
On February 26 2026, Anthropic said it wouldn't allow two Pentagon use cases in its contracts: mass domestic surveillance and fully autonomous weapons. Two days later, OpenAI said it reached a Pentagon deal for classified AI deployments and argued its safeguards could still hold inside the agreement. The split exposes the real issue now facing AI vendors, governments, and regulated buyers. That is should ethics limits block deals or be enforced from inside it?
Anthropic's Ethical Redlines
Anthropic wasn't on the outside looking in. It said Claude was extensively deployed across the Department of War and other national security agencies and that the company had already put models into classified U.S. government networks. Anthropic also said two use cases, mass surveillance (including of the public), and fully autonomous weapons, we're never included in its contracts. Those cases are the fault lines in the dispute with Trump's Pentagon and US government.
Anthropic framed the issue as a narrow refusal, not a broad rejection of national security work. Dario Amodei said Anthropic supported “98% or 99%” of Pentagon use cases, but the company would not give up the remaining two limits. In its own words, Anthropic said, “we cannot in good conscience accede to their request.” Reuters reported that stance put a defense contract worth up to $200 million at risk.
What Washington Did Next
The dispute escalated when President Trump directed the government to stop work with Anthropic and ordered a six month phase out of Anthropic technology across government. The Pentagon also moved to treat Anthropic as a supply chain risk. That raised the cost of holding hard limits when the customer is the government.
What OpenAI Signed
OpenAI took a different approach. In its own statement titled, 'Our agreement with the department of war', the company said its agreement had “more guardrails than any previous agreement for classified AI deployments, including Anthropic’s.” OpenAI also said, “We were—and remain—unwilling to remove key technical safeguards.” That is the core tension in this story.
Anthropic refused the terms it saw as too open. OpenAI signed and argued that stronger controls inside the agreement could still hold the line.
The details matter. OpenAI said the Department of War may use its system for all lawful purposes, but the same published terms say the system cannot independently direct autonomous weapons where law or policy requires human control, cannot make high stakes automated decisions that require human approval, and cannot be used for unconstrained monitoring of U.S. persons’ private information. OpenAI also said it keeps its safety stack in place, limits deployment to cloud infrastructure, keeps cleared personnel in the loop, and could terminate the contract if the government violates the terms.
See: Balancing AI Automation and Ethics in Fintech
The two companies are close on headline principles but not identical in practice. Anthropic draws two hard exclusions and refuses to move them. OpenAI accepts a broader legal framework, then relies on contract language, technical controls, and operational oversight to make similar limits enforceable inside the deal. That is a narrower and more conditional ethics model than refusing the agreement outright.
North of the border, the same trust question is already under pressure. After the Tumbler Ridge school shooting, Ottawa’s focus was whether AI evidence and escalation controls hold when governments ask for proof that safeguards, response rules, and accountability processes actually work under pressure. That's different than the Pentagon story that's testing how AI companies react and accept to full on defense contracts.
What This Means For Fintechs
For fintechs, banks, and infrastructure providers, the lesson is practical. Buyers in regulated markets now ask more than whether a model performs well. They ask who can audit it, who can override it, what records exist, how long they are kept, and whether a vendor can prove that a stated limit still holds when a regulator, a court, or a government agency pushes hard.
Read: From Guardrails to Judgment in Claude’s 2026 Constitution
On one hand, Anthropic's founders' moral compass highlights one method by maintaining hard limits even at the risk of losing a major federal contract. On the other hand, OpenAI's deal with the department of war is betting that contract terms, technical safeguards, and human oversight can preserve similar limits inside the agreement. Washington shows how quickly the state can force the issue. Ottawa shows what happens when public safety puts the same claims under direct scrutiny. In the next phase of AI adoption, trust rests less on capability claims and more on what a company can prove when the pressure rises.
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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Block Cuts Over 4,000 In AI Led Cost Reset
Feb 26, 2026 | NCFA Fintech Market Activity | Payments And Market Structure
AI Led Operating Reset Alongside Stronger Earnings and Higher 2026 Outlook
On February 26 2026, Block reported in its Q4 2025 shareholder letter that it is reducing its workforce from over 10,000 people to just under 6,000, which means more than 4,000 people are leaving or entering consultation as the company resets how it operates around AI.
The timing of the news is strategic given that cuts arrive alongside stronger operating results, not a weak quarter. Block reports Q4 gross profit of $2.87 billion, up 24% year over year, with Cash App gross profit at $1.83 billion, up 33%, and Square gross profit at $993 million, up 7%.
The company also reported $485 million in operating income, $588 million in adjusted operating income, and adjusted diluted EPS of $0.65. Block's XYZ stock popped 25% in after hours trading after the announcement.
Block also raised its 2026 outlook. The company says it now expects $12.20 billion in gross profit for 2026, up 18% year over year, and $3.20 billion in adjusted operating income, up 54%. It says the workforce changes should begin to affect adjusted operating income more meaningfully in Q2, with the full impact of the new cost structure improving profitability in the second half of the year.
See: AI’s Hidden Costs in Replacing Junior Workers
So the layoff headline doesn't tell the whole story. The story of a scaling fintech that's using AI to push for higher product velocity and stronger operating leverage at the same time.
Jack Dorsey, CEO Block:
“Intelligence tools have changed what it means to build and run a company. We’re already seeing it internally. A significantly smaller team, using the tools we’re building, can do more and do it better. And intelligence tool capabilities are compounding faster every week.”
Block isn't cutting from a position of visible deterioration or weakness. It's cutting while growth accelerates, guidance rises, and management claims a smaller team can execute faster. That raises a harder question for the market. If a large payments platform can protect growth while resetting headcount this aggressively, investors may start to reward AI led efficiency gains faster than many teams expect.
Talking Point
If stronger fintech earnings now come with smaller teams, does AI start to reset the valuation premium around operating discipline and execution speed?
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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Tumbler Ridge Tests AI Evidence and Escalation Controls
February 23, 2026 | NCFA Market Activity | Artificial Intelligence And Data
Police Pursue Preservation Orders for Digital Evidence
On February 21, 2026, B.C.’s premier says police are pursuing preservation orders for potential evidence held by digital services companies, including social media platforms and AI companies, after media reports tied OpenAI to the case. This isn't a new fintech policy just yet, but it puts evidence readiness into the open. If a partner asks what you can preserve and produce under lawful process, you can’t appear like a 'deer in headlights'. You need a working path.
BC Government, Office of the Premier, Media Relations:
“Reports that allege OpenAI had related intelligence before the shootings in Tumbler Ridge took place are profoundly disturbing for the victims’ families and all British Columbians. We will use all powers of government to ensure that police have the tools they need to investigate every aspect of this horrific tragedy.”
Background Facts
RCMP report said that the active shooter call came in at about 1:20 p.m. on February 10 and the public alert ended at 5:45 p.m. Six victims were found deceased inside the school, two victims were airlifted with serious or life threatening injuries, a third victim died during transport, and about 25 others were assessed for non life threatening injuries. RCMP also reports two additional victims were found deceased at a connected residence.
See: AI Immerses Youth Today And The Real Question Of Protection
On February 13, RCMP reports more than 80 interviews took place with students, educators, and first responders, while forensic teams continued processing two scenes and a vehicle connected to the suspect. The investigative update also reported digital evidence work including witness images and videos, CCTV, and body worn camera video, and it says RCMP launched an online portal to collect more evidence, including phone footage captured inside the school.
In a BBC report, OpenAI spokesperson said that they didn't alert authorities about the account because its usage didn't meet its threshold of credible or imminent plan for serious physical harm to others...
"In June 2025, we proactively identified an account associated with this individual [Jesse Van Rootselaar] via our abuse detection and enforcement efforts, which include automated tools and human investigations to identify misuses of our models in furtherance of violent activities."
Evan Solomon, Minister of Artificial Intelligence and Digital Innovation per Globe and Mail reporting:
"Canadians expect online platforms, including OpenAI, to have robust safety protocols and escalation practices in place to protect online safety and ensure law enforcement are warned about potential violence,"
Practical Takeaways for Fintechs
This story turns AI governance into an evidence workflow. If your product runs AI in onboarding, fraud triage, collections, or support, partners need clear answers on what the system records, what it retains, who can access it, and how the team preserves and produces records under lawful process without breaking integrity. A stakeholder may accept model error but they won’t accept uncertainty about records, access, and escalation ownership when scrutiny rises.
See: Canada AI Strategy Confronts Capital Flight
Financial technology companies should define escalation triggers in plain language. Name an accountable owner and a backup. Restrict log access. Set retention windows you can defend. Test a short runbook for preservation and production so the team can execute it without debate when the question lands, an be sure to provide suitable ongoing training.
Talking Point
If preservation orders become a more common tool when AI enters an incident, does Canada need a shared baseline for AI logging, retention, and escalation handoffs so every regulated buyer does not rebuild the same checklist from scratch?
Reuters reported that OpenAI reps have been summoned to Ottawa urgently to discuss AI safety.
Update per CTV article: Following the meeting in Ottawa with OpenAI safety leaders, federal officials said they were “deeply disturbed” and ultimately “disappointed” that warning signals tied to the Tumbler Ridge shooter were not escalated to police earlier, with AI Minister Evan Solomon stressing Canadians expect platforms to maintain “robust safety protocols and escalation practices.” OpenAI is cooperating with the RCMP but produced no immediate new safeguards, leaving ministers to seek concrete follow-up proposals.
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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Wealthsimple Earns CIX Innovator Of The Year
Feb 19, 2026 | NCFA Fintech Market Activity | CIX Summit
Image: Michael Katchen, Co-founder and CEO, Wealthsimple
Wealthsimple Earns CIX Innovator Of The Year
On February 19 2026, Elevate named Wealthsimple Innovator of the Year for 2026 CIX Summit, who achieved a banner record year that included assets under administration doubling from $50B to more than $100B, 650,000 new clients, and more than 3 million Canadians served.
The release ties the award to three proof points that matter for founders and investors who care about durable scale.
First, it says Wealthsimple raised $750M in equity financing at a $10B post money valuation in October 2025 while maintaining profitability.
Second, it highlighted product expansion that moved beyond a single wedge, including 24/5 trading for US stocks, new trading tools including margin and expanded options strategies, plus a credit card.
Third, it points to distribution outcomes, including capturing 35% of all First Home Savings Accounts opened in Canada and ranking among the top three institutions in the country for net deposits.
Lisa Zarzeczny, CEO, Elevate:
“Wealthsimple exemplifies the bold innovation and execution that the CIX Innovator of the Year award celebrates. Their commitment to using technology to democratize access to sophisticated financial tools is exactly the kind of innovation Canada needs more of. We’re thrilled to honour their achievements and hear from Mike at CIX Summit about how they’re continuing to push boundaries in an industry ripe for disruption.”
This award lands in a moment where Canadian consumers keep moving toward digital first money management, and incumbents keep responding with pricing and product changes like options fee changes and real gold investing, plus competitive positioning where challenger platforms push directly at big bank margins. Those tracks connect cleanly to what CIX rewards here, which is compounding execution across product, distribution, and balance sheet strength.
In addition to Innovator of the Year award, see all 14 CIX 2026 startup award winners across early, emerging, and growth categories.
Mike Katchen is scheduled to accept the award and speak at CIX Summit 2026 on March 25 2026 at the Design Exchange in Toronto, alongside curated startup presentations and investor meetings, according to the release. NCFA is sharing a 20% community partner discount on CIX Summit passes for its community. Use CIXNCFA20 for 20% off. CIX publishes ticket options and event logistics on its official ticket page. Register with NCFA and save.
Talking Point
If a fintech can add hundreds of thousands of clients while it doubles assets, raises late stage capital, and expands into credit, what becomes the real incumbent moat in Canada next, distribution, product depth, or trust?
Awards do not build companies, but they do spotlight operating models that work. Congratulations to Michael Katchen and the entire Wealthsimple team for leading fintech in Canada across a number of fronts. Well deserved!
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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Apex Group Pilots WLFI USD1 Stablecoin for Tokenized Funds
Feb 18, 2026 | NCFA Fintech Market Activity | Tokenization and Digital Assets
Image: Freepik
Apex Group And WLFI Test USD1 Stablecoin Rails For Tokenized Funds
On February 18 2026, WLFI announced a strategic collaboration with Apex Group covering over $3.5 trillion in serviced assets, with a planned pilot to explore using WLFI’s USD1 stablecoin for tokenized asset subscriptions, distributions, and redemptions.
Apex Group operates in 52 countries and explains the work and partnership as a way to bring regulated stablecoin infrastructure into fund administration workflows, with the stated goal of streamlining settlement and improving operational efficiency for institutional clients.
See: VersaBank Becomes Banking Partner For QCAD Stablecoin
The collaboration also extends beyond cash movement. Parties will evaluate ways to make WLFI assets, including real estate and infrastructure holdings, available on the London Stock Exchange Group Digital Market Infrastructure platform, subject to applicable regulations and requirements. The Apex Group will also explore making assets tokenized using Apex Digital 3.0 available through WLFI’s planned mobile app, which the release says will support digital asset management and connections to bank accounts and wallets.
Zach Witkoff, Chief Executive Officer and Co Founder, World Liberty Financial:
“Working with Apex Group allows us to demonstrate USD1’s tremendous utility within capital markets infrastructure. This collaboration accelerates our mission to make WLFI assets accessible at the most established financial services platforms globally.”
The release also describes WLFI as inspired by President Donald J. Trump. The link to a political brand raises the stakes for how market participants evaluate governance, oversight, counterparty risk, and reputational exposure, especially when the use case touches institutional fund servicing rather than retail trading. Early WLFI token sales generated significant investor demand and capital commitments, positioning the ecosystem as both a funding vehicle and an emerging digital asset platform.
For tokenized funds, the operational promise is clear. Subscriptions and redemptions create predictable and repetitive money movement. A stablecoin rail can compress settlement timelines, tighten reconciliation loops, and reduce dependency on multi step bank handoffs, if the controls meet the standard that allocators and regulators expect.
If administrators can run clean tokenized fund flows on stablecoin rails, other administrators, custodians, and infrastructure providers will feel pressure to offer equivalent settlement options, or to partner with providers that already can. That competition will centre on who can deliver reliability, auditability, safeguards, and integration speed.
See: Stablecoin Interest and Rewards A Regulatory Fault Line
Peter Hughes, Founder and Chief Executive Officer, Apex Group:
“Our clients are increasingly interested in blockchain based solutions that deliver tangible benefits and cost savings. This collaboration with World Liberty Financial lets us examine how USD1 and stablecoin infrastructure can modernize our platform and services, while providing the edge to support our clients as digital asset integration becomes standard practice.”
Talking Point
If stablecoins start handling fund subscriptions and redemptions at scale, do administrators become the main gatekeepers that decide which stablecoin rails earn institutional trust?
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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