For many fintech startups, growth is measured by funding rounds, product launches, and landing enterprise customers. But as companies begin pursuing larger clients, they often discover that winning an RFP requires far more than innovative technology. Over time, procurement teams may begin to wonder whether vendors have the workplace practices needed to support long-term partnerships.
At the same time, regulatory expectations are rising. FINTRAC’s annual report 2023–24 issued 12 notices of violation totalling more than $25 million. These actions focus on financial compliance, yet they also reinforce the expectation that organizations demonstrate strong compliance practices well before problems arise. For startups looking to scale, compliance should be viewed as a business enabler rather than a box to check.
Enterprise Customers Are Buying More Than Your Technology
Enterprise procurement has changed from simply assessing financial stability. Organizations increasingly evaluate whether prospective vendors have the operational maturity to manage risk across the business.
The Government of Canada's Code of Conduct for Procurement reflects this shift by requiring suppliers to comply with human rights and labour standards, reinforcing that responsible business practices form part of supplier evaluation, not just product performance. Although many fintech startups may not pursue government contracts, the same principles often have a greater influence on enterprise procurement.
Buyers may request documentation of HR policies, employee onboarding practices, workplace training, and governance processes as part of extensive procurement questionnaires. These demonstrate that a growing company has established consistent standards, reduced operational risk, and can scale responsibly alongside its customers.
HR Compliance Supports Sustainable Growth
Rapid hiring is common during periods of growth, but expanding headcount without consistent processes can create risk. As organizations scale, clear documentation becomes crucial for maintaining efficiency across teams.
HR documentation supports the foundation for any business, including employee handbooks, onboarding processes, workplace policies, and role expectations, which help establish shared standards for employees and managers. For growing organizations, that means responsibilities regarding workplace conduct, leave policies, health and safety, confidentiality, and other expectations remain clear.
Beyond reducing administrative confusion, well-documented HR practices demonstrate that a business has built a strong infrastructure that’s prepared to scale. This level of organizational maturity becomes valuable when engaging enterprise customers, investors, and strategic partners who expect scalable internal operations alongside innovative products.
Fostering Workplace Health and Safety
For technology companies, workplace health and safety is not always viewed as important as in more traditional industries. However, modern workplace safety extends well beyond physical hazards.
The National Standard of Canada for Psychological Health and Safety in the Workplace provides voluntary guidance for organizations seeking to promote psychological well-being and prevent workplace harm. Although voluntary, the Standard has become an important benchmark for organizations looking to build resilient, healthy workplace cultures.
Canada's Workplace Harassment and Violence Prevention Regulations are legal expectations for federally regulated employees. These state that government workplaces must maintain certain measures. Even where these specific federal requirements do not apply, they illustrate the broader direction of workplace governance across Canada.
Embedding psychological health, respectful workplace practices, and consistent safety training into day-to-day operations helps create stronger organizations while demonstrating that employee well-being is treated as a core business responsibility.
Build Compliance Early On
Winning enterprise business depends on more than innovation alone. Procurement teams, investors, and regulators all look for signs that an organization has the workplace practices needed to support long-term growth.
For fintech startups, prioritizing compliance early helps strengthen credibility and avoid scrambling to build policies under the pressure of a major RFP. The companies that scale most effectively are often those that treat compliance as part of building a resilient business, not simply as a matter of meeting minimum requirements when opportunity knocks.
About The Author
Kim Morris is the Lead HR Consultant at Citation Canada. She supports employers and people leaders through complex workplace situations, including employee relations and conflict, performance concerns, terminations, and policy questions, with clear, practical next steps. Kim also helps organizations manage change, including restructures, acquisitions, and workforce transitions, balancing compliance with thoughtful communication. She is known for making HR feel workable, consistent, well-documented, and grounded in respect for people.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
July 29, 2026 | NCFA Insight | Artificial Intelligence And Data, Public Sector Policy And Industrial Strategy, Banking And Credit
AI Jobs, Inflation And Interest Rates
On July 29, 2026, the Bank of Canada released a working staff paper called Monetary Policy in an AI Driven Two Speed Economy raising a difficult possibility. AI could reduce jobs in some industries while the national inflation rate still looks calm.
The authors test this idea using a model with two industries. One adopts AI and needs fewer workers. The other continues operating near its limit. Lower interest rates can encourage spending and support jobs, but the same rate applies across the economy. A cut that helps the first industry can push up prices in the second.
The paper compares two hypothetical cases that produce the same increase in output:
When AI helps people do more work, the model needs a 1.48 percentage point rate cut to restore full employment
When AI takes over tasks previously done by people, the required cut rises to 3.34 points
These figures aren't forecasts or advice for the Bank of Canada. They show that replacing work creates a much larger employment challenge for monetary policy than helping workers become more productive.
The authors put the problem plainly:
"The apparent stability is cancellation, not balance."
Why Automation Requires A Larger Rate Cut
The paper separates two ways AI can affect work. The first is augmentation, where AI helps someone complete an existing job faster. The second is automation, where software or machines take over tasks that people were paid to perform. Companies will often use both in the same business, but the difference is important.
Even the first case reduces the need for labour in the model's short run. That may sound backwards. If employees become more productive, a company can produce the same amount with fewer hours. Prices and customer demand do not adjust immediately, so new orders do not replace those hours quickly enough. Automation has a larger effect because some tasks leave the workforce altogether.
To restore employment, the model lowers rates enough to increase spending. The larger cut needed after automation also sends more demand into the industry already running near capacity, where businesses respond by raising prices rather than producing much more. That is why the 3.34 point result is more than a larger version of the 1.48 point result. It carries a greater inflation cost.
For founders and investors, two AI projects can produce the same increase in output and still create very different businesses. A company that helps employees handle more customers may increase sales, hiring and margins together. A company that removes whole tasks may improve margins while cutting payroll and reducing demand for certain skills. The headline productivity number doesn't tell you which one is happening.
Stable Inflation Can Hide Industry Job Losses
When AI helps workers produce more, costs and prices can fall in the industries using it. A rate cut may then raise spending and prices elsewhere. The national average can look calm because the price changes cancel each other, even while AI exposed industries are losing jobs.
Automation produces a different result. The larger rate cut raises prices in both industries, so headline inflation reveals more of the strain. The comparison is that the same increase in output can create a different employment and inflation problem depending on whether AI supports paid work or replaces it.
Canada won't experience this evenly. Canada's AI productivity test found that adoption is already much higher in finance and insurance than across the business economy as a whole. Employment, wages, prices and AI use by industry may therefore tell policy makers more than one national average.
Retraining Reduces The Pressure On Interest Rates
The model improves when workers can reach industries that still need them. With easier job transfers, the required rate cut falls from 1.48 to 0.44 percentage points when AI helps workers. It falls from 3.34 to 1.05 points when AI replaces tasks. Retraining, recognized credentials, relocation support and faster hiring between industries can reduce the pressure placed on interest rates.
Investment can produce the opposite result. When money flows quickly into companies automating work, financing and equipment can become more expensive for other businesses. In that model scenario, the required rate cut rises from 3.34 to 4.09 percentage points. An AI investment boom can strengthen the companies buying the technology while adding costs for businesses competing for capital, infrastructure and skilled operators.
Interest rate cuts can also preserve jobs that automation has removed from a company's long term staffing needs. That may delay workers from reaching employers that still need them. Lower rates can buy time, but they can't retrain a worker, recognize a credential or help someone qualify for a growing occupation.
That changes what leaders should measure. Operators need to separate productivity gained through higher sales from savings gained through fewer paid hours. Investors should distinguish growth led margins from payroll led margins. Policy makers need industry level data on AI use, job openings, wages and prices early enough to see whether workers are reaching expanding sectors.
Talking Point
When AI raises output, how much comes from serving more customers and how much comes from removing paid work?
Related NCFA Intelligence
Continue through the Canadian policy, business and financial developments most closely connected to AI productivity and employment.
How permissions, reliable data and human review affect the use of AI inside financial firms.
Frequently Asked Questions About AI And Monetary Policy
Is this an official Bank of Canada forecast?
No. The figures come from hypothetical cases in an independent staff paper. They are not forecasts, rate recommendations or statements from the Bank's Governing Council.
Why does automation require a larger rate cut in the model?
Automation removes more paid work than AI that helps employees become productive. Restoring employment therefore requires a stronger increase in spending, which the model produces through a larger interest rate cut.
How can inflation remain stable while industries lose jobs?
AI can lower prices in industries where productivity rises while lower interest rates raise prices elsewhere. Those changes can cancel each other in the national average even as employment falls in certain industries.
What should Canada track as businesses adopt AI?
Industry level AI use, employment, job openings, wages and prices can show whether higher output is coming from growth, fewer paid hours or both. National inflation alone cannot provide that detail.
This article interprets independent Bank of Canada staff research. The paper uses hypothetical model scenarios. It is not an economic forecast, interest rate recommendation or Governing Council position. Information is current to July 29, 2026 and is provided for informational purposes only.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
July 29, 2026 | NCFA Market Activity | Artificial Intelligence And Data, Risk Compliance And Regtech, Competition And Market Structure
KPMG Canada Takes OpenAI Into Client Work
On July 29, 2026, KPMG Canada and OpenAIformed a Canadian alliance covering AI implementation, governance and cybersecurity. KPMG Canada also became an OpenAI Elite Partner, the highest level in OpenAI's partner network.
There's already a working base. More than 3,000 KPMG Canada employees have access to ChatGPT Enterprise. KPMG Canada says its Deal Advisory teams use Codex, OpenAI's coding agent, to help review thousands of pages of transaction documents and financial data, pull out relevant information and prepare analysis for professional review. KPMG Canada is also joining OpenAI's Daybreak Cyber Partner Program.
The alliance gives OpenAI a large Canadian delivery partner and gives KPMG closer access to the models, tools and technical support its clients are buying. The business opportunity lies in turning those tools into secure workflows that employees can use every day.
Ksenia Chumachenko, Head of Global Alliances at OpenAI:
"Canadian organizations are ready to move beyond pilots and put AI into production at enterprise scale."
KPMG Is Selling The Integration Work
Buying access to an AI model is straightforward. Connecting it to company data, permissions and existing software takes far more work. A bank reviewing customer files, a deal team reading contracts or a government department processing records also needs security controls, human approvals and a reliable account of what the system did. That's the work KPMG Canada wants to sell.
Its internal Codex workflow gives the firm a concrete implementation example, with experienced professionals still responsible for reviewing the output. KPMG Canada hasn't reported the time saved, accuracy rate, transaction volume or financial return. Those numbers will determine whether the partnership's service becomes repeatable and scales or remains an internal productivity case.
KPMG has used this delivery model before. Its work with CapIntel combines wealth technology with integration and change management for financial institutions. The OpenAI alliance applies the same commercial logic across a much larger range of business processes.
Cybersecurity adds another line of work. Through Daybreak, KPMG Canada plans to combine OpenAI models with its security and risk services. The announcement doesn't name a Canadian customer, deployed cyber product or launch date. Buyers should expect those details before treating the program as a proven commercial offer.
OpenAI Gains A Canadian Enterprise Channel
The Canadian agreement follows a U.S. alliance announced on July 21. The U.S. program includes OpenAI engineer certification, public sector software and work inside OpenAI's own supply chain systems. The Canadian announcement doesn't confirm that every U.S. program will be available here. The commercial aim is to get from a product demonstration to a paid deployment faster.
KPMG is keeping its model options open. A May 2026 Anthropic agreement is bringing Claude into KPMG's global workforce and client platforms. Canadian buyers will need to know why KPMG recommends one model over another and whether its commercial relationships influence that advice.
Canadian business use of AI rose from about 3% in 2022 to roughly 12% in 2025, while finance and insurance exceeded 30%. The Canadian adoption data points to a larger implementation market, with firms competing to connect AI to important work without losing control of customer data, security or accountability.
Client Results Are Still Missing
KPMG Canada has scale, technical access and more than 10,000 employees across over 40 locations. However, the alliance still has to prove that the finished systems are worth buying. Clients will want shorter processing times, lower operating costs, fewer errors or better service. They will also need clear rules for data access, human approval and responsibility when an agent produces a weak answer or takes the wrong action.
Specialist AI integrators and other large consulting firms are competing for the same work. Investors should watch for named production clients, repeat deployments, contract expansion and measured operating results. Partner status may open the door.
Talking Point
Which Canadian workflow will give KPMG and OpenAI their first measurable client result?
Related NCFA Intelligence
Follow the Canadian delivery, governance and security work most closely connected to this alliance.
Why organizations need to identify agents, limit access and monitor the actions they take.
Frequently Asked Questions About The KPMG OpenAI Alliance
What did KPMG Canada and OpenAI announce?
They formed an alliance focused on putting OpenAI models and agents into Canadian business and public sector workflows. KPMG Canada will provide implementation, governance, risk and cybersecurity services around the technology.
How is KPMG Canada already using OpenAI?
More than 3,000 employees have access to ChatGPT Enterprise. KPMG Canada says its Deal Advisory teams use Codex to review transaction documents and financial data, identify relevant information and prepare analysis for professional review.
What does OpenAI Elite Partner mean?
KPMG says it is the highest level in the OpenAI Partner Network. The designation shows a close delivery relationship. It doesn't establish client adoption or the performance of a particular deployment.
Is the Canadian agreement the same as the U.S. alliance?
No. The Canadian announcement focuses on Canadian clients, internal use, Deal Advisory and the Daybreak cyber program. The earlier U.S. announcement includes additional programs that KPMG Canada has not confirmed for this market.
Is KPMG working only with OpenAI?
No exclusivity was announced. KPMG also has a global agreement with Anthropic and is bringing Claude into its workforce and client platforms.
Has KPMG reported Canadian client results?
Not yet. The July 29 announcement did not identify a Canadian client deployment, contract value, pricing model, productivity result or revenue target.
Partner status and internal use examples do not establish client performance or future revenue. Undisclosed commercial terms and unreported operating results are identified as such. Information may change after the publication date. This content is provided for informational purposes only and does not constitute investment, financial or legal advice.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
July 29, 2026 | NCFA Market Activity | Digital Assets Blockchain And Tokenization, Capital Markets And Market Infrastructure, Artificial Intelligence And Data
Nearly 1,000 Patents Across Stablecoins, Payments And AI
On July 27, 2026, Circle acquired part of IBM's blockchain patent portfolio. The deal covers more than 680 patent families and nearly 1,000 issued patents worldwide across blockchain technology, banking, financial services, insurance, enterprise infrastructure, supply chain verification and secure cloud operations. Circle says the purchase makes it the largest U.S. holder of blockchain patents. The price wasn't disclosed.
That's a substantial collection. A patent family usually groups related applications filed in different countries around the same or similar invention. Nearly 1,000 issued patents therefore doesn't mean Circle bought nearly 1,000 separate technologies.
Circle says the portfolio supports USDC, Circle Payments Network, its Arc blockchain and financial tools built for AI agents and agentic finance. Circle and IBM also plan to explore other commercial work together. What hasn't been disclosed is just as important. Circle hasn't said how many patents were issued in the United States, how long they have before they expire, whether IBM kept any licensing or usage rights, or how Circle plans to use the portfolio.
What Circle Actually Bought
A patent gives its owner the right to stop others from making, using or selling the claimed invention in the jurisdiction where it was granted. The commercial value depends on the claims, their remaining life, where they apply and whether they cover technology that companies actually need.
There are several ways Circle can use the patents. They can use them defensively if another company challenges its products, license selected rights to partners, include them in a commercial agreement or enforce them where it believes a competitor is infringing. Circle joined the LOT Network in 2023 to reduce its exposure to patents acquired by patent assertion firms, which suggests its earlier IP strategy was primarily defensive. The IBM purchase gives Circle more choices, but the company hasn't said which one it intends to use.
The portfolio also arrives as Circle is taking on more of the financial stack. USDC remains the core business. At March 31, 2026, Circle reported US$77 billion of USDC in circulation, 28% of the fiat-backed stablecoin market and US$694 million in quarterly revenue and reserve income. Reserve income still supplied 94% of that total. The company is growing other revenue, but it remains highly exposed to USDC circulation, interest rates and the distribution payments required to support its network.
Where The Patents Fit In Circle's Business
Circle has been adding products around the stablecoin rather than relying on issuance alone. Circle Payments Network connects financial institutions for cross-border settlement. Arc gives the company its own blockchain environment for payments, foreign exchange and capital markets applications. Its developer tools cover wallets, contracts and transfers between blockchains.
Circle has been adding products around the stablecoin rather than relying on issuance alone. Circle Payments Network connects financial institutions for cross-border settlement. Arc gives the company its own blockchain environment for payments, foreign exchange and capital markets applications. Its developer tools cover wallets, contracts and transfers between blockchains. In July, Circle received final OCC approval to establish a U.S. national trust bank, adding federally supervised custody and the possibility of managing the USDC reserve later.
NCFA has followed that expansion through Circle's public listing, its push to make stablecoins usable through banks and its infrastructure for AI agent payments. The IBM portfolio can support those products where the patent claims match what Circle is building. It may also give enterprise partners more confidence that Circle has rights around important parts of its technology.
For Canada, the immediate connection is USDC. Circle committed to meet Canadian value-referenced crypto asset requirements in 2024, allowing registered crypto platforms that comply with the rules to continue offering it. Circle's Canadian undertaking explains that operating position. Canadian banks, payment firms and fintechs considering stablecoin infrastructure will care less about the size of the patent portfolio than whether it produces reliable products, clearer commercial rights and integrations they can use.
What Could Create Value And What Could Get In The Way
Circle could use the relevant patents to build products faster, lower legal risk in partner deals and protect technology that customers are already adopting. Licensing could add another source of fee income, while joint work with IBM could help Circle reach enterprise buyers that are difficult to win through crypto channels alone.
There are limits however. A large portfolio costs money to review, maintain and defend. Some patents may cover older systems, narrow claims or countries that don't matter to Circle's current sales. Enforcement can be expensive and may create friction with developers or partners. Most importantly, Circle hasn't connected the portfolio to a new product, customer contract, licensing programme or revenue target.
Founders should read this as an IP and distribution decision, not a product launch. Investors have clearer numbers to watch. Those include growth in Circle's non-reserve revenue, adoption of Circle Payments Network and Arc, new IBM commercial agreements, licensing income and any legal action tied to the acquired patents. Until those appear, the portfolio expands Circle's options. It doesn't tell us which options will pay.
Talking Point Will Circle use the IBM patents to build faster, win enterprise partners or keep competitors away?
NCFA Company Intelligence Snapshot
Circle
Stablecoins, payments and programmable financial infrastructure for institutions and developers
Last updated Jul 29, 2026
Company At A Glance
Founded2013 by Jeremy Allaire and Sean Neville
HeadquartersNew York, United States
StatusPublic company, NYSE CRCL
Company StagePublic Scale
ProductsUSDC, EURC, USYC, Circle Mint, Circle Payments Network, Arc and developer infrastructure
USDC CirculationUS$77.0B at Mar 31, 2026
Q1 2026 RevenueUS$694M total revenue and reserve income
Market Share28% of fiat-backed stablecoins at Mar 31, 2026
Regulatory PositionU.S. national trust bank approval plus regulated entities in the EU, Singapore, Bermuda and other markets
Milestones
Select a milestone to follow Circle's development
1Consumer Launch2013-2016
2USDC Focus2018-2019
3Institutional Scale2021-2024
4Public Platform2025
5Financial StackJan-Jul 2026
6IBM PatentsJul 2026
Milestone 1
Consumer Payments Launch (2013-2016)
Jeremy Allaire and Sean Neville founded Circle in 2013. Its first product made it easier for consumers to buy, hold and send bitcoin, then added dollar, pound and euro balances for social payments.
Company
Circle Internet FinancialFounded by Jeremy Allaire and Sean Neville
Stage
LaunchConsumer bitcoin and money transfer service
Capital
US$136MFunding announced through the 2016 strategic round
Markets
US, UK And EuropeDollar, pound and euro payment accounts
Customers
ConsumersPeople buying bitcoin and sending money
Competition
Simple AccessReduced the friction of buying and using bitcoin
Additional Company Data
US$17 million Series B in 2014 brought total funding to US$26 million
US$50 million round in 2015 was co-led by Goldman Sachs and IDG Capital
Circle became the first company to receive a New York BitLicense in 2015
US$60 million financing in 2016 supported international expansion
NCFA Perspective
Circle began by hiding much of bitcoin's complexity from consumers. The company later applied the same idea to businesses that wanted blockchain settlement without building every part themselves.
Milestone 2
USDC Becomes The Core Business (2018-2019)
Circle launched USDC in September 2018 with the CENTRE consortium and support from more than 30 exchanges, wallets, protocols and applications. After acquiring and later spinning out Poloniex, Circle concentrated the company around USDC and related services.
Company
Stablecoin IssuerCircle became the first commercial issuer of USDC
Stage
Product FocusUSDC replaced exchange ownership as the main direction
Capital
US$110M Series EBitmain led the 2018 financing tied to USDC
Markets
Crypto MarketsA digital dollar for trading, payments and settlement
Customers
Platforms And DevelopersExchanges, wallets, protocols and applications
Competition
Redeemable DollarOpen ERC-20 access with reserve attestations
Additional Company Data
USDC launched on Sep 26, 2018
Circle and Coinbase co-founded the CENTRE Consortium
USDC initially used Ethereum's ERC-20 standard
Circle spun Poloniex into a separate company in Oct 2019
NCFA Perspective
USDC gave Circle a product that other companies could distribute. The dollar token could travel through exchanges, wallets and applications while Circle handled issuance and redemption.
Milestone 3
Institutional And Regulatory Scale (2021-2024)
USDC circulation reached US$22 billion in 2021 and passed US$50 billion in early 2022. Circle raised new capital, brought BlackRock and BNY into reserve management and custody, then added regulatory positions in Singapore, the European Union and Canada.
Company
Regulated InfrastructureStablecoin issuance supported by institutional reserve partners
Stage
Institutional ScaleUSDC became a large settlement asset
Capital
US$840MUS$440 million raised in 2021 and US$400 million announced in 2022
Markets
Global RegulationLicensing and compliance expanded across major financial centres
Customers
InstitutionsExchanges, fintechs, banks and asset managers
Competition
Reserve TrustLiquidity, redemption and regulated access became selling points
Additional Company Data
BNY became a primary custodian for USDC reserves in 2022
BlackRock began managing the Circle Reserve Fund
Circle received a Singapore Major Payment Institution licence in 2023
Circle's French entity became a MiCA-compliant issuer in Jul 2024
USDC met Canadian VRCA listing requirements in Dec 2024
NCFA Perspective
Circle paired stablecoin growth with banking relationships and regulated entities. That work helped USDC remain available in markets where issuer standards became stricter.
Milestone 4
Public Company And Platform Expansion (2025)
Circle listed on the New York Stock Exchange in June 2025. It also launched Circle Payments Network and the Arc public testnet, adding payment coordination and a company-led blockchain to the stablecoins and developer services already in market.
Company
NYSE CRCLPublic internet financial platform company
Stage
Public ScaleStablecoin issuer expanded into network products
Capital
US$583MNet primary IPO proceeds after underwriting, before offering costs
Markets
Payments And Capital MarketsCross-border settlement, tokenized assets and blockchain applications
Customers
Financial InstitutionsBanks, payment firms, asset managers and developers
Competition
Full PlatformCircle began competing beyond stablecoin issuance
Additional Company Data
IPO priced at US$31 per share and the total offering reached about US$1.2 billion
USDC ended 2025 with US$75.3 billion in circulation, up 72%
Circle reported US$2.7 billion in 2025 total revenue and reserve income
CPN had 55 enrolled financial institutions by Feb 2026
Arc public testnet launched with more than 100 participants
NCFA Perspective
The listing funded a wider platform. Circle now had to show that payments, Arc and software services could become businesses of their own instead of remaining support for USDC circulation.
Milestone 5
Financial Stack Expansion (Jan-Jul 2026)
Circle expanded managed payments, bank distribution and AI tools while USDC reached US$77 billion in circulation. Final U.S. approval for Circle National Trust added a federally supervised custody business and a possible future role in reserve management.
Company
Full-Stack PlatformStablecoins, payments, blockchain, custody and software tools
Stage
Product ExpansionMore services built around USDC distribution
Capital
US$55M Net IncomeQ1 2026 income from continuing operations on US$694 million in revenue and reserve income
Markets
Bank And Enterprise AccessInstitutional settlement, custody and programmable payments
Customers
Banks And Payment FirmsStandard Chartered, Nium and CPN participants
Competition
Distribution RaceStablecoin issuers, banks and payment networks compete for settlement flows
Additional Company Data
USDC held 28% of the fiat-backed stablecoin market at Mar 31, 2026
Reserve income supplied 94% of Q1 2026 revenue and reserve income
Other revenue doubled year over year to US$42 million in Q1
CPN annualized transaction volume reached US$8.3 billion at Mar 31
Circle National Trust is a trust bank, not a retail deposit-taking bank
NCFA Perspective
Circle is using USDC distribution to sell more payment, custody and software services. The main commercial test is whether those products can reduce the company's dependence on reserve income.
Milestone 6
IBM Blockchain Patent Portfolio (Jul 2026)
Circle acquired more than 680 IBM patent families covering nearly 1,000 issued patents worldwide. The portfolio spans blockchain, banking, insurance, enterprise infrastructure, supply chain verification and secure cloud operations.
Company
Circle IP PortfolioAcquired patents added to Circle's internal technology
Stage
IP ExpansionProduct rights and legal options expanded
Capital
UndisclosedPurchase price and financial terms weren't published
Markets
Global PatentsIssued rights across multiple jurisdictions and industries
Customers
Enterprise UsersFinancial institutions, payment firms and developers
Competition
IP PositionCircle says it is now the leading U.S. blockchain patent holder
Additional Company Data
The portfolio contains related patents within more than 680 patent families
Circle says the rights support USDC, CPN, Arc and agentic financial tools
Circle and IBM plan to explore further commercial opportunities
Circle hasn't disclosed the U.S. patent count, remaining terms or licensing plan
No product revenue or customer contract was announced with the acquisition
NCFA Perspective
The portfolio can help Circle protect products, negotiate enterprise deals or license technology. Its value will become clearer when patents appear in products, partnerships, revenue or legal action.
Related NCFA Intelligence
Four useful ways to place Circle's patent portfolio inside the stablecoin market it is building around.
The federal reserve, redemption and issuer requirements behind Circle's current U.S. expansion.
Frequently Asked Questions About Circle
What did Circle acquire from IBM?
Circle acquired part of IBM's blockchain patent portfolio. The transaction covers more than 680 patent families and nearly 1,000 issued patents worldwide across blockchain, banking, financial services, insurance, enterprise infrastructure, supply chain verification and secure cloud operations.
Does Circle now own nearly 1,000 separate inventions?
Not necessarily. A patent family groups related patent applications covering the same or similar invention in one or more jurisdictions. The portfolio contains nearly 1,000 issued patents within more than 680 families, so the patent count should not be read as the number of separate technologies acquired.
Why did Circle buy IBM's blockchain patents?
Circle says the portfolio supports USDC, Circle Payments Network, Arc, onchain products and financial tools for AI agents. It may also use relevant patents in product development, commercial agreements, licensing or legal defence. Circle has not published a detailed patent use or licensing plan.
How much did Circle pay IBM?
The purchase price and other financial terms were not disclosed. Circle also has not said how many acquired patents were issued in the United States, how long individual rights have left to run or whether IBM retained licences.
Will the patent portfolio generate revenue for Circle?
Circle has not announced patent licensing revenue, a product launch, a customer contract or a financial target tied to the acquisition. Licensing and commercial partnerships are possible uses, but their value cannot be confirmed until Circle reports an agreement or financial result.
How does Circle currently make money?
Circle earns most of its revenue from the reserve assets backing USDC. Reserve income supplied 94% of its US$694 million in total revenue and reserve income during the first quarter of 2026. Other revenue includes integration services, blockchain rewards, redemption fees and fund management fees.
How large is USDC?
Circle reported US$77.0 billion of USDC in circulation and a 28% share of the fiat-backed stablecoin market at March 31, 2026. Those figures can change with issuance, redemptions and market demand.
Is Circle a bank?
Circle Internet Group is a public financial technology company. In July 2026 it received approval to establish Circle National Trust, a U.S. national trust bank intended for digital asset custody and possible future USDC reserve management. A national trust bank is not the same as a retail bank that accepts insured customer deposits.
Is USDC available in Canada?
USDC can be offered by Canadian registered crypto asset trading platforms that comply with the Canadian Securities Administrators' value-referenced crypto asset requirements. Availability depends on the platform, and USDC is not covered by Canadian deposit insurance.
Is Circle publicly traded?
Yes. Circle Internet Group listed on the New York Stock Exchange in June 2025 under the ticker CRCL. Public company financial results cover the Circle group and should not be treated as separate results for every product or regulated subsidiary.
Patent counts do not establish product quality, commercial value or future revenue. Undisclosed transaction terms and possible patent uses are identified as such. Information may change after the stated update date. This content is provided for informational purposes only and does not constitute investment, financial or legal advice.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
July 27, 2026 | NCFA Companies On The Move | Digital Assets Blockchain And Tokenization, Wealth Investing And Trading, Competition And Market Structure
Coinbase Canada’s Everything Exchange Ambition
Parent Founded2012
Canada Launch2023
Parent FoundersBrian Armstrong and Fred Ehrsam
Company StageMarket Expansion
Coinbase is preparing to offer crypto derivatives to Canadian permitted clients, the first near term product in a much larger Canadian platform plan. In a Coinbase Canada interview, chief executive Eric Richmond said Coinbase Financial Markets had received an international exemption and expected the product to go live within weeks. He also wants Coinbase Canada to become a CIRO dealer in early 2027.
The derivatives aren’t live yet, and the first release isn’t intended for the general retail market. Stocks, ETFs and prediction markets are also part of Coinbase’s Canadian ambition, but no complete launch date has been announced. This profile separates what Canadians can use today from the approvals, products and customer adoption Coinbase still needs to turn a crypto account into a wider investment platform.
What Coinbase Canada Offers And What Comes Next
Canadians can already use Coinbase for spot crypto trading, Advanced trading tools, Interac e Transfer and electronic funds transfer deposits, PayPal purchases and eligible USDC rewards. The Coinbase Canada platform operates as a restricted dealer across every province and territory and as a registered FINTRAC money services business. Richmond said it lists more than 200 crypto assets.
The first expansion is narrower than the larger platform pitch. Coinbase Financial Markets expects to offer derivatives through an international exemption within weeks, beginning with permitted clients. The OSC permitted client definition includes institutions and certain financially sophisticated clients. It doesn’t include every Coinbase Canada customer.
Richmond’s next target is early 2027 membership in the Canadian Investment Regulatory Organization. The CIRO crypto dealer requirements cover capital, conduct, custody, operations and supervision. Approval would give Coinbase Canada a more permanent dealer base than its current restricted dealer registration, although it wouldn’t approve every future product automatically.
The ambition goes well beyond derivatives. Richmond has described a Canadian app spanning crypto, cash, stocks, ETFs and prediction markets. The Coinbase tokenized stock plan separately refers to customers outside the United States, but that wording doesn’t confirm Canadian availability. No complete Canadian launch date has been published for stocks, ETFs or prediction markets.
Why The Canadian Plan Needs Several Approvals
Coinbase can’t bring every global product into Canada under one registration. Its restricted dealer status supports the crypto trading business already operating here. Derivatives would come through a separate Coinbase affiliate and an exemption for permitted clients. Stocks and ETFs need securities dealer permissions, while prediction markets could face different requirements depending on the contracts and how they’re offered.
That puts regulation inside the product plan. Coinbase signed an enhanced preregistration undertaking in March 2023, launched its Canadian service with Interac access that August and completed its Coinbase Canada registration in April 2024. It became the first international exchange registered as a restricted dealer in Canada. It’s now adding products in the order its permissions allow instead of treating the global catalogue as one Canadian launch.
CIRO membership sits in the middle of that plan. Canada has been directing crypto trading platforms toward investment dealer registration and CIRO membership, while CIRO’s 2026 custody framework adds specific expectations for digital and tokenized assets. Membership wouldn’t approve every future product on its own. It would give Coinbase Canada a stronger dealer base from which to apply.
Founders and operators will recognize the build underneath the app. One customer interface may rely on several legal entities, registrations and product approvals. The front end can feel simple even when custody, execution, market access, capital and customer protection sit in separate operating lanes.
Why Coinbase Wants More Than Spot Trading
Coinbase Global’s first quarter figures explain why the company wants more ways to earn from each account. Coinbase Global spot volume fell 50% from a year earlier to US$202 billion, while monthly transacting users declined 15% to 8.2 million. Net revenue was US$1.3 billion, and the company recorded a US$394 million net loss. Those are global Coinbase figures, not Coinbase Canada results.
Other products are already helping to carry more of the business. Coinbase reported more than US$200 million in annualized retail derivatives revenue, while prediction markets reached US$100 million in annualized revenue during March. Its 2025 purchase of Deribit added a large crypto options business, and subscription and services produced US$583.5 million of first quarter net revenue. A customer using several products can remain valuable even when spot trading cools.
Canada is already a serious platform contest. Wealthsimple combines stocks, ETFs, crypto, cash accounts and other financial products inside one app. Robinhood entered Canada in June by buying WonderFi, giving it Bitbuy, Coinsquare, approximately 300,000 funded customers and regulated local infrastructure. Robinhood’s WonderFi purchase showed what that operating base was worth before the transaction closed. Kraken, Shakepay, NDAX and other registered platforms compete for crypto customers, while banks and established brokerages already control much of the Canadian investment relationship.
Coinbase brings a global exchange, custody, stablecoin and derivatives stack to that contest. Its challenge is local distribution. Canadians need a reason to transfer cash and assets, accept a new fee structure and keep several parts of their financial lives in the same account. Product breadth helps, but pricing, trust, tax reporting, execution quality and the limits attached to each registration will decide whether the app becomes a primary account or another trading venue.
What Makes Coinbase Canada Different In Summer 2026
Coinbase enters this Canadian stage with infrastructure a local exchange would struggle to replicate. Deribit adds options depth, Coinbase Financial Markets provides a regulated derivatives route, and USDC supports trading and rewards. The public parent also ended March with US$10.4 billion in cash, cash equivalents and marketable investments.
None of that makes Canadian adoption automatic. The derivatives release still has to launch, attract permitted clients and work well. CIRO membership remains a target, while stocks, ETFs, prediction markets and tokenized equities still need confirmed Canadian availability. Coinbase doesn’t publish Canadian customers, assets, revenue or market share, so public figures can’t yet show how large the local business has become.
The Company Intelligence Snapshot below follows the company, capital, product and regulatory decisions that brought Coinbase to this Canadian expansion stage.
NCFA Company Intelligence Snapshot
Coinbase Canada
The Canadian operating business, shown with the Coinbase Global history and infrastructure behind its expansion
Last updated Jul 27, 2026
Company At A Glance
Parent FoundedCoinbase was founded in 2012 by Brian Armstrong and Fred Ehrsam
Parent StatusCoinbase Global is listed on Nasdaq under COIN
Canadian EntityCoinbase Canada, Inc., incorporated in British Columbia
Canadian StatusRestricted dealer in all provinces and territories; FINTRAC MSB M22815925
Current Canada OfferSpot crypto, Advanced trading, Interac and EFT funding, PayPal purchases and eligible USDC rewards
Near Term PlanCrypto derivatives for Canadian permitted clients through Coinbase Financial Markets
Regulatory TargetCIRO dealer membership in early 2027, according to the Canadian chief executive
Global Q1 RevenueUS$1.3B net revenue; Coinbase does not disclose Canadian revenue
Global Platform AssetsUS$294B at Mar 31, 2026; Canadian assets are not disclosed
Global Users8.2M monthly transacting users in Q1 2026; Canadian users are not disclosed
Business ModelTransaction revenue plus subscription and services revenue from stablecoins, custody, staking, financing and memberships
Canadian CompetitionWealthsimple, Robinhood through WonderFi, Kraken, Shakepay, NDAX and established brokerages
Milestones
Select a milestone to follow how Coinbase built a public crypto platform and entered its next Canadian market stage
1Formation2012
2Public ListingApr 2021
3Canada LaunchAug 2023
4Restricted DealerApr 2024
5Everything ExchangeAug 2025 to Jun 2026
6Canada Phase TwoJun to Jul 2026
Milestone 1
Coinbase Starts With A Simple Bitcoin Account (2012)
Brian Armstrong and Fred Ehrsam founded Coinbase in 2012 to make it easier for people to buy, sell, store and transfer Bitcoin. The customer account became the base for a much larger crypto business.
Company
CoinbaseA US founded crypto platform
Stage
FormationA retail entry point into Bitcoin
Capital
Venture BackedPrivate funding supports exchange and custody infrastructure
Markets
United StatesCrypto access before international expansion
Customers
Retail UsersPeople seeking a simpler way to access Bitcoin
Competition
Early ExchangesTrust, payments and ease of use are central differentiators
Additional Company Data
Coinbase begins with a hosted customer account rather than a self custody only product
Trading, custody and fiat access develop around the same customer relationship
Regulatory engagement becomes a core operating requirement as the platform grows
The company later adds institutional and developer businesses alongside retail
Why This Milestone Matters
The original account created the distribution base Coinbase still uses. New products can be offered where customers already hold assets and complete identity checks, reducing the work required to introduce another financial service.
Milestone 2
Coinbase Lists On Nasdaq (Apr 2021)
Coinbase listed its Class A shares directly on Nasdaq under COIN in April 2021. Public reporting opened a clearer view into trading volume, platform assets, users, revenue and the company’s exposure to crypto market cycles.
Company
Coinbase GlobalA public holding company
Stage
Public ScaleExchange growth becomes visible through filings
Capital
Nasdaq listing under COINPublic equity replaces private financing as the main valuation reference
Markets
InternationalThe business expands across retail, institutions and developers
Customers
Several SegmentsConsumers, institutions, businesses and builders
Competition
Global PlatformsCrypto exchanges, custodians and financial apps
Additional Company Data
Transaction revenue remains sensitive to crypto prices and customer activity
Public filings separate transaction revenue from subscription and services
Platform assets and monthly transacting users become important operating measures
The public balance sheet supports acquisitions and regulatory investment
Why This Milestone Matters
The listing gave Coinbase capital and credibility, but it also made the volatility of spot trading visible every quarter. That pressure helps explain the continuing investment in stablecoins, derivatives, subscriptions and other products.
Milestone 3
Coinbase Builds A Canadian Funding Route (Aug 2023)
Coinbase formally launched its Canadian expansion with Interac e Transfers provided through Peoples Trust. More than half of customer deposits used Interac during the month before the announcement, showing why a local payment connection was essential.
Company
Coinbase CanadaA local operating entity within Coinbase Global
Stage
Market EntryCanadian product and payment localization
Capital
Parent FundedNo separate Canadian financing disclosed
Markets
CanadaA priority international market
Customers
Canadian Crypto UsersRetail access with local currency funding
Competition
Local ExchangesInterac reduces a practical advantage held by Canadian platforms
Additional Company Data
Interac e Transfer becomes available to all Canadian Coinbase users
Peoples Trust provides the local payment connection
Canada is also a technology employment base for the global company
Local user, asset and revenue figures are not separately disclosed
Why This Milestone Matters
Global brand recognition wasn’t enough on its own. Coinbase needed a familiar Canadian deposit and withdrawal method before it could compete effectively for the local customer account.
Milestone 4
Coinbase Canada Becomes A Restricted Dealer (Apr 2024)
Coinbase Canada completed restricted dealer registration across Canada in April 2024 after signing an enhanced preregistration undertaking the previous year. It became the first international crypto exchange registered under the Canadian framework.
Company
Coinbase CanadaA registered Canadian crypto platform
Stage
Regulated OperationNational restricted dealer status
Capital
Regulatory CapitalFinancial requirements attach to the registered entity
Markets
All Provinces And TerritoriesCanadian registration coverage
Customers
Approved Canadian UsersAccount limits and disclosures follow local terms
Competition
Registered PlatformsTrust and compliance become part of the sales proposition
Additional Company Data
Registration supports the approved spot crypto business
Coinbase Canada is also registered with FINTRAC as a money services business
Restricted dealer status is not approval for every Coinbase Global product
The next regulatory objective is investment dealer registration and CIRO membership
Why This Milestone Matters
The registration kept Coinbase in Canada as several global exchanges left. It provided a compliant operating base, although the restricted category still limits how far the product range can expand.
Milestone 5
Coinbase Builds The Everything Exchange (Aug 2025 to Jun 2026)
Coinbase added Deribit, equities, prediction markets and more derivatives as it developed the Everything Exchange strategy. The goal is to let customers trade more assets and use more financial services where they already hold crypto and cash.
Company
Coinbase GlobalA multi product financial platform
Stage
Platform ExpansionBeyond spot crypto trading
Capital
US$10.4BCash, equivalents and marketable investments at Mar 31, 2026
Markets
Crypto And Traditional AssetsProducts vary by jurisdiction
Customers
8.2M MTUsGlobal monthly transacting users in Q1 2026
Competition
Financial Super AppsBrokerages, exchanges and consumer finance platforms
Additional Company Data
Deribit adds global crypto options liquidity and institutional activity
Retail derivatives passed US$200M in annualized revenue in Q1 2026
Prediction markets reached US$100M in annualized revenue in March 2026
Tokenized stocks were announced for non US customers without confirmed Canadian timing
Why This Milestone Matters
Coinbase is reducing its dependence on spot trading by selling more products through the same account. The global infrastructure gives the Canadian business options, but each product still needs a local route to market.
Milestone 6
Coinbase Canada Starts Its Next Product Stage (Jun to Jul 2026)
By July 2026, Eric Richmond was leading Coinbase Canada. In interviews that month, he set out the next operating priorities. Coinbase planned to launch derivatives for permitted clients, pursue CIRO membership and work toward a Canadian version of the Everything Exchange.
Company
Coinbase CanadaA local business using global product infrastructure
Stage
Market ExpansionFrom spot crypto toward more asset classes
Permitted Clients FirstThe initial derivatives release is not general retail access
Competition
Platform ContestWealthsimple and Robinhood already span several financial categories
Additional Company Data
Confirm the derivatives launch date, contracts, pricing and legal entity
Track permitted client adoption and any later retail availability
Watch the CIRO application and conditions attached to membership
Separate confirmed Canadian products from the global Everything Exchange catalogue
Why This Milestone Matters
Coinbase has named the Canadian destination and the first product expected to get it there. The next test is execution. Readers can watch for live products, approved registrations, customer use and Canadian results that show whether the strategy is gaining ground.
Related NCFA Intelligence
Four useful ways to place Coinbase Canada’s plan inside the market it’s entering.
A competing model for distributing tokenized equities through exchanges, wallets and established market infrastructure.
Frequently Asked Questions About Coinbase Canada
Is Coinbase regulated in Canada?
Yes. Coinbase Canada, Inc. is registered as a restricted dealer across Canada and as a money services business with FINTRAC. Restricted dealer registration is not the same as CIRO dealer membership, which the Canadian chief executive says the company is targeting for early 2027.
Is Coinbase launching crypto derivatives in Canada?
Coinbase Canada chief executive Eric Richmond said in July 2026 that Coinbase Financial Markets expected to offer derivatives to Canadian permitted clients within weeks. The product had not yet launched when this profile was verified on July 27.
Who will be able to use the Canadian derivatives product?
The first release is intended for permitted clients, a Canadian regulatory category that includes institutions and certain financially sophisticated clients. Coinbase has not announced general retail availability.
Can Canadians trade stocks and ETFs on Coinbase?
Coinbase has described stocks and ETFs as part of its Canadian Everything Exchange ambition, but it has not announced a complete Canadian launch date. A global Coinbase announcement for non US tokenized stocks should not be treated as confirmation that the product is approved or available in Canada.
Will Coinbase offer prediction markets in Canada?
Prediction markets are part of the stated Canadian platform plan, but Coinbase has not announced a Canadian launch date or the legal and regulatory structure it would use. Availability would depend on the contracts offered and Canadian approvals.
What does Coinbase currently offer Canadians?
The current Canadian platform offers spot crypto trading, Advanced trading tools, Interac e Transfer and electronic funds transfer funding, PayPal purchases and eligible USDC rewards. Product availability and reward rates can change.
How many Canadian customers does Coinbase have?
Coinbase does not publish a current Canadian customer count. Its public filings report global users, trading volume, assets and revenue, but those figures should not be presented as Coinbase Canada results.
How does Coinbase make money?
Coinbase Global earns transaction revenue from trading and subscription and services revenue from products including stablecoins, custody, staking, financing and memberships. It does not disclose the revenue or product mix of Coinbase Canada separately.
Who competes with Coinbase in Canada?
Its direct crypto competitors include Robinhood through Bitbuy and Coinsquare, Kraken, Shakepay, NDAX and other registered platforms. Its wider platform ambition also places it against Wealthsimple, established brokerages and financial institutions that already offer Canadian investment accounts.
Is Coinbase Canada part of Coinbase Global?
Yes. Coinbase Canada, Inc. is the Canadian operating entity within Coinbase Global. Coinbase Global is the Nasdaq listed parent. Parent company financial results and global user figures are not the same as Canadian results.
Coinbase Global figures are identified separately from Coinbase Canada information. Planned products, launch timing and regulatory targets may change. This content is provided for informational purposes only and does not constitute investment, financial or legal advice.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
We're opening up more and more APIs to partners, fintech services, and client applications. The only question is whether we're confident these same APIs aren't opening up new paths for attackers.
Open Banking Is Changing Not Just How Data Moves, But the Trust Model Itself
Just a few years ago, a bank mostly dealt with its own systems. A customer would log into the app, check their balance, make a transfer. The whole journey stayed inside the perimeter of a single organization.
Today, one customer might simultaneously use a mobile banking app, a budgeting service, an accounting platform, a payment provider, and an AI assistant that analyzes their spending. All of these services exchange data through APIs - interfaces that let different systems talk to each other according to a set of established rules.
Open Banking isn't just a regulatory requirement or a new integration channel - it's a shift in the trust model itself. A bank used to be responsible for security within its own infrastructure. Now it hands off part of its data to dozens of external services, and those services, in turn, rely on the bank. The more participants in the ecosystem, the more points there are where trust is either reaffirmed or cracked, every single day.
Why APIs Have Become the New Attack Perimeter
Attackers are less and less interested in finding a weak spot inside any one bank. Today, hackers target the interaction between systems itself. The longer the chain - bank, fintech, payment hub, partner app - the more places there are for something to go wrong.
Common examples include:
authorization flaws, where a user of one app can reach another app's operations;
excessive permissions granted "just in case";
access controls that check whether someone is logged in, but not whether the data actually belongs to them;
risky third-party integrations, where a partner's weakness becomes an entry point into the bank's system;
token leaks through logs or unsecured channels;
vulnerable business logic that can be bypassed in ways no one planned for.
An API can perform flawlessly on the functional side - fast, stable, no errors in the logs - and still carry a critical vulnerability. Functional correctness and cybersecurity don't always go together.
Why Standard Checks Aren't Enough Anymore
Banks and fintech companies generally don't neglect API security. They go through certifications, run automated scans, do code reviews and QA. But none of these tools answer the one question that matters most: can this specific API's logic be bypassed in a way its developer never anticipated? Scanning catches known vulnerability patterns; code review and QA confirm the code does what it was built to do. Neither one thinks like an attacker who isn't hunting for a bug in the code, but for a logical gap in how the API interacts with other systems.
That's why most attacks on financial APIs today aren't about technical mistakes - they're about logic: the sequence of actions, the boundaries of authority, the trust placed in data coming from the client. It's also why modern Cybersecurity Solutions for Fintech increasingly go beyond formal compliance with standards, testing real-world abuse scenarios at the points where multiple systems meet.
What to Check in Your Open Banking API
Here's a short checklist for reviewing every external API in your ecosystem:
Can a user of one account reach another account's data?
Do all authorization levels - for the client, the partner, and internal processes - work correctly and consistently?
Can an expired or revoked token still be used?
Are all endpoints equally protected, including the ones not visible in the main interface?
Can business restrictions - limits, action sequencing, operation statuses - be bypassed?
Is the number of requests per client or integration rate-limited over time?
Are actions that deviate from normal behavior actually logged?
If you don't have a confident answer to any of these, that's reason enough to look closer.
How to Check What Automated Tools Can't See
It's worth telling apart three things that often get lumped together. Vulnerability scanning looks for known vulnerabilities by signature, catching familiar vulnerability classes, common misconfigurations, and known dangerous patterns. Automated testing checks whether the code performs its intended functions correctly. Separate from both is API Penetration Testing (https://datami.ee/services/pentest/api-penetration-testing/) - manual testing in which a specialist plays the role of a real attacker: combining requests, tweaking parameters, hunting for unusual sequences of actions that a scanner, in most cases, won't flag as anomalous, because each individual request looks legitimate on its own.
It's also best if this kind of testing is handled by an external team. In-house specialists tend to know their own API inside and out - and that's precisely what makes it hard for them to spot an unconventional abuse scenario, since day-to-day work with a system's logic doesn't train you to look at it through the eyes of someone deliberately trying to break it. External specialists bring experience from other architectures and payment integrations, so they're more likely to catch the gaps a team had written off as unimportant.
Open Banking Only Works When Trust Works
A bank can offer the most convenient digital service and the best partner API on the market. But if even one partner or customer stops trusting the security of the data exchange, the benefits of Open Banking vanish almost instantly. Trust here isn't a bonus feature - it's the baseline condition, and without it the whole structure loses its meaning.
That's why investing in API protection in the financial sector isn't just about regulatory compliance - it's about sustaining trust across the whole ecosystem: between bank and fintech, fintech and customer, and customer and every new service they let into their data.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
July 27, 2026 | NCFA Market Activity | Capital Markets And Market Infrastructure, Wealth Investing And Trading, Banking And Credit
Ontario Teachers’ Adds Platform Economics To CLO Equity
On July 27, 2026, Ontario Teachers’ and M&G agreed to establish a European CLO joint venture. Ontario Teachers’ Pension Plan has agreed to provide up to €200 million for equity investments in future M&G Margay collateralized loan obligation issuances. It will also participate in the long term economics of M&G’s European CLO business.
The second part makes this more interesting than a pension fund buying CLO securities for its portfolio. Ontario Teachers’ is tying capital to future M&G issuances and participating in the long term economics of the platform those transactions can grow. The release doesn’t disclose an ownership stake in M&G itself, the economic formula, governance rights, return targets or the term of the joint venture.
Capital will be deployed transaction by transaction under an agreed investment framework. That gives Ontario Teachers’ room to assess each issuance instead of transferring the entire commitment at closing. For M&G, it provides an aligned source of equity capital that can help the Margay programme issue more CLOs when market conditions and available loans support them.
Why The Equity Tranche Can Pay More And Lose First
A CLO buys a diversified pool of corporate loans and finances that pool by issuing layers of debt and equity. M&G says Margay invests in European broadly syndicated loans. Those are loans arranged for larger corporate borrowers and distributed across several institutional lenders.
Cash collected from the loans pays the senior CLO tranches first. The equity tranche sits at the bottom and receives what remains after interest, expenses and required payments have been made. The European Central Bank’s CLO analysis explains the tradeoff clearly where equity has the highest potential return, but it's paid last and absorbs losses first when loans default.
Ontario Teachers’ is therefore accepting more than ordinary bond risk. Returns can benefit when loan income exceeds the cost of the CLO’s debt and credit losses remain contained. They can fall when defaults rise, recoveries disappoint, financing becomes expensive or structural tests redirect cash away from equity investors.
The pension plan says European CLO equity complements and diversifies its existing programme. Europe also gives it a different pool of borrowers, managers and issuance periods. What hasn’t been disclosed is the expected return, how much of the €200 million may be used in each Margay transaction or exactly how the platform economics will be divided.
Committed Equity Capital Can Help A CLO Manager Issue At Scale
M&G launched Margay in 2023 and reports €1.6 billion currently in issue. The programme sits inside a €10 billion loan platform, a €27 billion structured and private credit business and M&G’s €93 billion Private Markets business. M&G’s Life business has also invested more than £1 billion in structured credit strategies over time.
Equity capital is essential because every new CLO needs investors willing to take the most junior position. A dependable partner can make future issuance easier to plan, although every transaction still depends on loan availability, funding costs and investor demand for the more senior tranches.
The market is active enough however to support that ambition. European CLO issuance reached €15.9 billion in the first quarter of 2026, up from €14 billion in the previous quarter. CLOs led all placed European securitisation categories during the period.
Other managers are securing similar pools of committed equity:
Sagard | HalseyPoint launched a US$250 million target CLO equity fund for future issuances after Sagard acquired a 40% interest in the manager. Sagard, affiliates, insurers and other institutional investors had committed US$92.5 million at launch.
Oak Hill Advisors closed a US$1.1 billion CLO equity fund in September 2025 with commitments from pension funds, sovereign wealth funds and other institutions. OHA said the capital could support about US$10 billion of CLO deployment.
Columbia Threadneedle entered a multiyear agreement with a Jefferies led investor consortium to supply equity for several CLOs. The structure gave the manager repeat issuance capital rather than funding for only one transaction.
These deals are structured differently, but the managers face the same challenge in that they need investors willing to fund the riskiest part of each new CLO. A strong credit team and a supply of suitable loans aren’t enough without that equity capital. Ontario Teachers is also going a step further. Along with investing in future CLO equity, it will participate in the long term economics of M&G’s European CLO business.
The Opportunity Comes With A Harder Risk Question
If Margay issues regularly and its loan pools perform, Ontario Teachers’ could earn from both its equity positions and its negotiated participation in the platform. M&G gains a long term institutional partner without receiving the full commitment before suitable transactions are ready.
A slower issuance market may leave part of the commitment unused. Competition for loans can make assets more expensive and reduce the difference between loan income and CLO funding costs. Higher defaults or weaker recoveries reach the equity tranche first. The public announcement also leaves outsiders unable to compare the value of the platform participation with the risk Ontario Teachers’ is taking.
This transaction is aligned with a larger expansion in non bank credit, but the categories need care. Margay’s disclosed collateral consists of broadly syndicated loans, while private credit normally refers to loans negotiated privately between non bank lenders and borrowers. They can share institutional investors and leveraged corporate borrowers without being the same market.
The Bank of Canada recently issued a warning about non bank debt risk. The Bank says Canadian pension fund and insurer exposures to global private credit appear manageable, while limited transparency and growing connections across financial structures still warrant monitoring. The Ontario Teachers’ transaction isn’t evidence of distress. It does show why the ownership, funding and risk links around credit managers are becoming more important to understand.
The commercial trend is already visible across private market platforms. Large investors want more than passive fund exposure, while managers want dependable capital that can support repeat origination or issuance. The open question is whether the added platform economics compensate investors for taking concentrated, junior risk over several market cycles.
Talking Point
Will more pension funds negotiate access to both CLO equity and CLO platform economics, or will first loss risk and tighter returns keep most institutions in individual securities and diversified funds?
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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. 
