Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Fintech International
Bank of England Sets New Rules for Systemic Stablecoins
Stablecoin Regulations | Nov 17, 2025
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UK Stablecoin Consultation And What It Means
On November 10 2025, the Bank of England released a proposed regulatory regime for sterling denominated systemic stablecoins for consultation. The paper explains how large scale issuers designated as systemic would be required to back customer balances, manage reserves and operate safely within the United Kingdom financial system. These rules apply only when HM Treasury designates an issuer as systemic.
See: Europe’s Digital Euro and Bank Stablecoin Race
Smaller issuers remain active in the market under the Financial Conduct Authority rules and may transition into the systemic framework if they grow to a scale that could influence the wider financial system.
The consultation is the most detailed update to United Kingdom stablecoin policy since HM Treasury released draft cryptoasset legislation in April 2025, and establishes a clear structure for how systemic digital money could function safely in day to day payments.
Stablecoin Backing Rules And Safety Requirements
The consultation explains how systemic stablecoins must be backed and why this structure matters for safety in everyday payments. Issuers must hold at least 40% of reserves as deposits at the Bank of England. The remaining portion, up to 60%, can be invested in short term United Kingdom government securities. This mix offers strong protection and keeps the reserve simple and transparent.
The Bank of England also outlines a transition period for new issuers. In the early stages, they may place up to 95% of backing assets in government debt before moving toward the long term structure. This step is meant to support early growth while maintaining a high level of safety.
See: Shopify, Coinbase, Stripe to Take USDC Payments Mainstream
All backing assets must sit in a statutory trust that always matches the value of coins in circulation. This requirement protects customer funds and reduces the risk of shortfalls during periods of stress. It also creates a clear line between the issuer’s own balance sheet and the assets that support the stablecoin.
Custody Rules And Safeguards For Stablecoin Reserves
The proposed regime introduces requirements for how backing assets are held and protected. The consultation sets out the expectation that backing assets sit in a segregated trust structure with protections similar to client asset rules. This mix of central bank deposits and short term government securities is intended to provide strong protection for customer funds while allowing issuers to generate modest returns needed to support operations.
Institutions holding backing assets would also need to meet operational resilience standards and demonstrate they can respond to stress conditions without interruption to customer redemptions.
Prudential Oversight For Systemic Issuers
Systemic stablecoin issuers would operate under prudential requirements similar to other payment system operators. The consultation notes that the Bank of England would supervise major issuers to ensure continuing safety, strong risk controls and effective recovery planning.
See: BIS Proposes Scoring Model for Crypto AML
The focus is on preventing operational failure in a systemically important payment instrument. The combination of required reserve composition and Bank of England supervision is designed to manage the risks associated with large scale issuance of digital money in everyday payments.
How Stablecoins Will Connect Into UK Payment Systems
Issuers that reach systemic scale would be supervised in the same framework applied to other major payment firms. The regime outlines how stablecoins can connect to payment rails in the United Kingdom while meeting resilience expectations. The Bank of England highlights the importance of maintaining continuity of payments even during stress events, which is a central consideration in the proposed framework.
How To Respond To The Consultation
The Bank of England is accepting written submissions on the consultation. Responses can be provided directly through the consultation portal hosted by the Bank of England.
Why It Matters
The consultation is a major advancement toward integrating large scale stablecoins into the formal financial system. It provides clear expectations for how issuers can operate safely with trusted backing, operational resilience and strong central bank supervision while supporting innovation in payments.
See: Global Payments to Reach $2.4 Trillion and Tokenized Future
Canada continues to develop its own approach to digital assets and stablecoin oversight. The Retail Payment Activities Act is already in effect and sets expectations for payment service providers. Budget 2025 confirmed that federal authorities are developing a national framework for stablecoins and the Bank of Canada will administer it with publication expected in 2026. As other jurisdictions advance their own frameworks, coordinated and transparent regulation will remain important for financial stability and consumer protection.
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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OpenAI Launches Group Chat Pilot Shared Intelligence
AI Innovation | Nov 17, 2025
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OpenAI Launches Shared Space For Human and AI Collaboration
On November 13 2025, OpenAI launched group chats in ChatGPT, a pilot feature that allows multiple users and ChatGPT to share one conversation in pursuit of 'shared intelligence'. The pilot began in Japan, New Zealand, South Korea, and Taiwan across Free, Go, Plus, and Pro plans. The company OpenAI says the feature makes it easy for people to collaborate with each other and with ChatGPT in the same conversation.
Group chats support up to twenty (20) participants with image generation, file sharing, search, and voice input. The system uses GPT 5.1 Auto to select the best model for each prompt. OpenAI confirmed that personal ChatGPT memory is never shared and that group interactions remain separate from private conversations.
Shared Intelligence to Impact Decision-Making
Shared intelligence could change how teams capture and process information. According to a 2025 analysis of generative AI productivity and economic potential, integrated AI systems already improve knowledge worker output by 15% to 30% across major sectors. When teams include AI directly in discussion, duplication can drop, consensus can form faster, and complete records of decisions can be created automatically.
For fintechs, this can mean faster product design, simpler compliance, and clearer investor communication.
See: Study Finds ChatGPT Weakens Memory and Focus
The change also raises questions about accountability. When AI helps a team reach conclusions, who owns the reasoning and who confirms its accuracy?
The implications extend beyond efficiency. The way AI interacts in a group may influence which ideas get attention. Teams should keep transparency in mind so AI remains a guide and not an unseen decision maker.
Governance and Transparency
Canada explored rules for transparency fairness and accountability in the Artificial Intelligence and Data Act which was part of Bill C-27 but it didn't pass before Parliament prorogued so the framework is not in force. NCFA Canada's article on EU AI transparency rules explains how new European transparency requirements can inform Canadian policy discussions. The rise of multi participant AI spaces like group chats brings these questions forward in practical ways.
OpenAI explains in the announcement that group chats are separate from private conversations and that each person controls who can join see the history or leave at any time. However, the company hasn't stated whether or not combined group chats will be used to improve future models (read: yes, of course it will).
See: ChatGPT Launches RECORD for Live Transcription | ChatGPT Creator Tells Us What Is Coming Next
For fintech firms and regulators alike this latest innovation creates a new conversation about privacy and shared decision tools. It could also prompt review by agencies such as the Office of the Superintendent of Financial Institutions and the Canadian Securities Administrators on the expectations for audit consent and oversight in shared AI environments where many people view the same model output at the same time.
Risks of Collective Reasoning
Shared intelligence can support teamwork but it also introduces risks. Research shows that digital tools can increase group pressure when an automated system gives the first idea, people may follow it instead of challenging it.
This has been highlighted in a 2024 review on digital collaboration bias (for GenZ) which found that automated cues can influence group judgment. When AI participates in a group, a confident early answer can impact the scope and direction of discussion. In business and policy settings this can lead to faster but sometimes weaker reasoning. In regulated sectors such as financial technology, groupthink sparks questions about traceability and clarity and who owns the final decision.
While OpenAI keeps group chats separate from personal memory, uses invitations, and gives people control over the tools, these steps can't replace good human practice (just yet). Teams should still help themselves by asking for different views, inviting questions, and noting why choices were made when AI is involved. This helps keep decisions strong and makes sure people stay responsible for the final choice.
A Step Closer to Humans and AI Thinking Together
The arrival of group chats in ChatGPT is an early pilot of shared intelligence where people and AI reason together in a transparent social setting.
Read: Good, Bad, and Ugly of Project Strawberry’s Capabilities (loss of human autonomy)
As AI moves from a private assistant to a group collaborator, it's time for Canada and global stakeholders to ensure shared intelligence is designed in such a way that it strengthens collective decision-making and trust in both the process and outcome.
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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Top Red Flags of Scam Forex Brokers and How to Spot Them Early
Nov 17, 2025
Image: Pixabay/PIX1861
Forex trading can be profitable, but it is also an avenue for scammers. Not all brokers can be trusted, and falling for one can cost you money fast. Knowing warning signs before you trust anyone with your money can save you from these losses. Here is a look at the most common red flags and how to spot them before it is too late.
1. Unrealistic Profit Promises
The main reason to try forex trading is its potential for higher profit margins from short-term trading opportunities. However, these promising high returns come with equal risks that no legitimate broker can remove. The first warning sign of a scam broker is unrealistic promises like “never lose money” and “earn 10% on each trade.” Some dealers may also show you doctored screenshots or fake account statements to convince you that their system is profitable.
See: ShadowLeak Shows Zero Click AI Agent Risk
These promises are meant to convince inexperienced beginners looking for quick money. You can avoid them by choosing dealers who explain risks clearly and do not give unreasonable promises. These dealers will provide historical data, trading tools, and education. They will also prioritize risk management and walk you through the journey without promising quick wins. Remember, if the numbers are too good to be true, always analyze them before risking your money.
2. No Regulation or Fake Regulatory Claims
One of the most important things to check before opening an account with a forex agent is their registration and adherence to regulatory bodies. A reliable middleperson should be legally registered with a verifiable address or trading platform. They should also be licensed by recognized bodies like the Financial Conduct Authority or the Canadian Investment Regulatory Organization. Any dealer who cannot prove their registration and licensing is a major red flag.
Check reviews to see what other people say about the dealer. Avoid anyone who does not give honest details about their services. Moreover, check their website to see if they offer customer support or additional resources. For stress-free trading, you can work with brokers that use Tradelocker, as they are regulated with proper licensing. They also offer client fund protection to ensure your deposits are not at risk, even if the broker experiences financial issues.
3. Aggressive Sales Tactics and Constant Pressure
A scam broker will always push you to act quickly. They may call, email, or message you repeatedly, urging you to deposit funds immediately. Some dealers may also offer bonuses or exclusive deals that require immediate action. This kind of pressure is designed to instill fear or missing out (FOMO) and exploit you with urgency tactics. Avoid any broker who uses aggressive sales tactics or promises last-chance deals from the outset.
A legitimate broker gives you time to make decisions and provide the necessary information before you invest. They will also operate transparently and respect your decision if you choose to withdraw your funds. Moreover, be aware of brokers who offer mastery courses or expensive mentorship programs that cost you thousands of dollars. These programs are a secret to get your money with generic content that can be found for free.
Endnote
Fake brokers lack verifiable licenses and use pushy and unrealistic promises to get your money. You can protect yourself by asking for registration and being wary of guaranteed profits and high-pressure brokers. Seeking guidance from investment advisors is also important to understand the risks involved in forex trading.
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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Robinhood Partners With Gopuff for Cash is King Delivery
Fintech Innovation | Nov 14, 2025
Image: Freepik/jcomp
New U.S. Service Explores On Demand Access to Physical Cash
On November 14 2025, numerous outlets such as MarketWatch, PYMTS and Nasdaq reported Robinhood Markets and Gopuff introduced a pilot program allowing select users to order physical cash delivered directly to their door. Cash home delivery is also mentioned on Robinhood's banking page here. Coverage of the cash delivery pilot notes that Robinhood Gold users can request up to $500 in cash for a small delivery fee, with expansion to other cities expected in 2026.
See: Robinhood’s WealthTech Push and Lifestyle Finance
This service shows how digital finance and physical cash can work together, expanding traditional banking limits. Gen Z consumers, though mostly digital first, still use cash in limited social and tipping situations. Their focus on convenience, control, and safety fits with on demand delivery.
Delivering cash brings new challenges in security, anti money laundering, and consumer protection. It also raises questions for regulators about whether cash delivery is a financial service or simply a delivery task.
Canadian Market Implications
The pilot is based in the United States, but Canadian fintechs are likely watching closely. Even though cash use is dropping, it still matters for many people (stickiness of cash). A similar approach could work in large cities like Toronto or Vancouver, where younger consumers use digital tools but sometimes need cash. The main innovation is about trust and convenience, both of which are key in a competitive financial market.
For Canadian regulators and startups, this is a chance to look at new ways to provide access to cash using technology that fits with digital wallets. Verified reporting from Nasdaq on the Robinhood Gopuff collaboration shows that this initiative is designed as a customer friendly fintech trial rather than a major banking shift (yet).
See: Robinhood Acquires WonderFi for C$250M
Although this pilot is not available in Canada, it draws attention to similar challenges here. NCFA’s earlier reporting on rural bank closures and the KOHO Canada Post partnership demonstrate that financial inclusion depends on reliable local service and creative use of technology. Having said that, Canada Post has its own money management problems, with sustained multi-year operating losses due to the decline of physical mail, a hit to expanding cash access. That is why new partnerships between fintech and delivery providers may be needed to keep service available in remote areas.
Then there's also Neo Financial in Calgary, a three-peat winner on Deloitte's Fast 50 enterprise growth category, launched by the people who built SkipTheDishes deliver service. Ronbinhood's pilot could stoke that mix of fintech and delivery experience, hinting at what might come next. A future where getting your money could be as simple as ordering a meal.
Outlook
This partnership shows how fintech and physical delivery can meet real world needs. If the pilot works, more companies could test similar options in North America. For NCFA readers, it highlights how innovation, inclusion, and access come together in consumer finance, and how even younger users still value choice and control over their money.
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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Coinbase Opens a New Chapter for Token Sales
Token Sales | Nov 13, 2025
Image: Freepik/diana.grytsku
A New Standard for Fair and Transparent Token Launches
On November 10, 2025 Coinbase announced the launch of its new 2025 end-to-end token sales platform, with the goal is to make token launches more open, fair, and easy to understand, while helping projects build real communities and stable markets. The news is the return of U.S. retail access to public token sales for the first time since 2018, triggered by both market demand and a pro-crypto U.S. Securities and Exchange Commission (SEC) who now says that most crypto tokens are not securities, a complete pivot from the Gensler years when regulators focused mainly on enforcement.
Redesigning Token Sales for a Fairer Market
Coinbase’s new model aims to redefine how tokens are launched and distributed by emphasizing fairness, compliance, and long-term project stability. Instead of fast paced selling campaigns that reward a small group of insiders and large buyers, Coinbase is implementing an algorithm that fills smaller requests first, giving retail users increased access to participate. Similarly, here you can find Coinbase black friday deals. This sale window remains open for a set period, usually about a week, and then once closed, allocations are finalized. This ensures a balanced distribution and greater transparency in how tokens reach users.
See: Coinbase Pushes for Tokenized Equities Approval
Every issuer must share verified information about its team, tokenomics, and goals before the sale begins. Coinbase requires a 6 month lock-up period for issuers and their affiliates, which prevents early sell-offs and maintains market trust. These requirements strengthen accountability and align with the platform’s focus on transparent and compliant token issuance.
Coinbase’s design also rewards true community participation. Users who hold tokens beyond the first 30 days receive higher priority in future sales, discouraging short-term speculation (a type of loyalty benefit). For issuers, the model offers exposure to Coinbase’s global retail base and a transparent way to build exchange liquidity over time.
Coinbase has confirmed that Monad (MON) will be the first project to use the new platform, with its token sale scheduled for November 17–22, 2025. A key test of how a compliant, exchange led distribution can work in practice.
The design directly addresses problems seen during the 2017–2018 ICO boom, when many projects raised funds without meeting disclosure or compliance standards. Coinbase’s structured, transparent model supports fair access for users while maintaining clear accountability for issuers.
Then and Now: Token Sales Compared
| Component | ICO Era (2017–2018) | Coinbase Model (2025) |
| Regulatory Clarity | Operated in uncertain areas with little oversight. Many projects later faced SEC actions | Built under SEC guidance that most tokens are not securities, supported by clear disclosures and verified governance |
| Access and Distribution | First-come systems rewarded speed and capital. Retail participation declined as regulators tightened oversight after widespread enforcement against unregistered ICOs, leading most platforms to limit token sales to accredited investors | Algorithm fills smaller requests first, expanding access and allowing U.S. retail buyers to join under defined limits |
| Issuer Accountability | Founders could sell immediately after launch and there were few restrictions or audits | 6 month issuer lock-up and Coinbase approval for any resale, keeping incentives aligned with buyers |
| Market Integrity | Tokens often listed quickly and traded on hype, leading to volatile price swings | Sales connect directly to Coinbase’s exchange roadmap, adding structure and steady liquidity over time |
| User Protection | Few safeguards or verified disclosures; frequent fraud cases | Verified project details, transparent sale process, and checks that reward real users over short-term traders |
Regulatory Perspective
Coinbase’s token sale model operates under the U.S. Securities and Exchange Commission’s current interpretation that most tokens are not securities when issued transparently and tied to legitimate network utility. This approach aligns with the SEC’s Project Crypto initiative, which promotes responsible innovation, fair access, and clear disclosure standards for digital assets.
In contrast, Canada maintains a more restrictive policy framework. Under current Canadian rules, most token sales are considered securities offerings unless they clearly fall outside investment contract criteria. The foundational guidance remains the CSA Staff Notice 46-308 – Securities Law Implications for Offerings of Tokens, which sets out how tokens may qualify as securities depending on their structure, purpose, and how they are marketed to participants.
See: Coinbase MiCA Licence Unlocks Europe Wide Crypto Access
Also, the Canadian Securities Administrators hosts an investor advisory titled Buying and Selling Crypto Assets, which cautions that token sales and trading platforms must comply with registration and disclosure requirements. Unlike the U.S., where retail investors are now permitted to participate in regulated public token sales, Canadian participation remains limited to accredited or exempt investors.
It's clear that the two markets are taking different paths. The United States is moving toward a system that rewards transparency and practical utility, while Canada’s framework continues to prioritize investor protection via restriction. Over time, Canada may need to modernize its regulatory approach to encourage innovation and maintain competitiveness in the global digital asset economy.
Outlook
It was also recently discovered that Coinbase is moving it's legal incorporation from Delaware to Texas, as detailed in a report on the company’s shift to Texas corporate law. Texas offers a more innovation-friendly business environment and growing digital asset economy. Overall, Coinbase's new token sale model could help define how token distribution evolves worldwide, offering a practical roadmap for compliance with retail access.
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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J.P. Morgan Launches First Public USD Deposit Token
Digital Money | Nov 12, 2025
Image: Freepik/Pikisuperstar
J.P. Morgan Becomes First Bank to Issue a Deposit Token on a Public Blockchain
On November 12, 2025, J.P. Morgan announced that it had become the first major bank to issue a USD deposit token on a public blockchain. The new JPM Coin (ticker JPMD) allows institutional clients to send and receive funds instantly using Base, the Ethereum Layer 2 network developed by Coinbase.
The project follows successful testing in June of this year with B2C2, Coinbase, and Mastercard, which achieved real-time issuance and redemption of the token. The initiative is led by Kinexys by J.P. Morgan, the bank’s blockchain division that has built digital financial infrastructure since 2015.
Why J.P. Morgan is Leading This Transformation
J.P. Morgan’s motivation goes beyond efficiency. By placing regulated deposits directly on a public chain, the bank is positioning itself for the next era of interoperable digital finance. Its clients can now settle cross-border trades, treasury flows, and digital asset transactions onchain, with the reliability and security of a regulated deposit. This model combines bank-grade security with blockchain’s speed and transparency.
See: Bank-Issued Deposit Tokens Emerge and JP Morgan Sees Them Going DeFi
Rather than competing with stablecoins, J.P. Morgan is building a framework where traditional deposits become programmable financial instruments, integrated with smart contracts.
The launch shows how large banks are implementing strategies for digital money. For global institutions, it reduces the friction of moving funds across time zones and platforms, offering constant access to liquidity and settlement.
By offering instant, always-on settlement and programmable deposits backed by a regulated bank, J.P. Morgan is setting a new standardfor how traditional finance can participate safely in the digital asset economy while maintaining oversight and trust.
Lessons for Canada’s Regulators
For Canada, J.P. Morgan’s approach provides a clear case study as the Office of the Superintendent of Financial Institutions (OSFI) and the Bank of Canada (BoC) advance their own stablecoin policy framework. If Canada adopts similar standards for CAD-denominated deposit tokens, it could enable cheaper, faster settlements while maintaining full regulatory oversight.
See: VersaBank USA Launches Tokenized Deposits Pilot
There's also an opportunity for Canadian fintechs to collaborate with banks on compliant blockchain payment rails. Domestic players like Interac and major banks may soon face competitive pressure if global stablecoin transactions become a new standard. This type of regulatory model would allow Canadian financial institutions to issue tokenized deposits that preserve trust while keeping innovation local.
How Deposit Tokens Could Impact Payment Payment Economics
Once Canadian regulators establish clarity around digital deposits, the cost of settlement could fall dramatically. Current payment systems such as e-Interac and card networks, rely on intermediaries that add delay and cost. Regulated tokens could settle value directly between wallets within seconds, removing several layers of friction.
While this could reduce traditional fee income, it also supports innovation and opens new business models.
See: Corporate Crypto Treasuries Cross $137B as DATCos Multiply
Banks could earn from providing liquidity, token custody, or smart contract services. Fintechs could integrate programmable money into real-time lending, payroll, or cross-border commerce.
If Canada aligns with international standards, the combination of stable onchain settlement and regulatory assurance could strengthen national competitiveness and attract global capital.
Outlook
J.P. Morgan’s entry into public blockchain payments proves that regulated institutions can safely participate in decentralized finance while meeting compliance standards. The ability to move regulated value instantly across borders could help Canadian firms compete globally, expand access to capital, and reinforce confidence in digital finance.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Corporate Crypto Treasuries Cross $137B as DATCos Multiply
Digital Assets | Nov 12, 2025
Digital Asset Treasury Companies (DATCos) Move from Niche to Mainstream
On November 5, 2025 CoinGecko published a comprehensive 2025 Digital Asset Treasury Companies Report unveiling the trends, rankings and strategies of mainly public companies that are increasingly adding digital assets to their balance sheets.
See: LQwD Joins Microstrategy’s Bitcoin for Corporations
The report outlines three types of public DATCos including (1) Crypto mining firms (i.e., MARA Holdings), (2) Pure play firms whose sole purpose is to accumulate crypto assets (i.e., Strategy or Bitcoin Treasury Corp), and (3) Companies with crypto reserves (i.e., Bitfarms Ltd), with the full source data being available in the report along with CoinGecko's Treasuries Tracker (NB: includes government holdings in rankings).
CoinGecko’s data shows the number of Digital Asset Treasury Companies expanding from just 4 in early 2020 to 142 by October 2025. Total holdings rose from about $30 million to $137.3 billion USD, more than doubling in 2025 alone.
Bitcoin represents about 82.6 % of total holdings, Ethereum 13.2 %, and Solana 2.1 %, with the rest spread among smaller tokens. The United States leads with 60 companies; Canada ranks second with 19, reflecting its strong base of listed miners and crypto firms.
The takeaway is that public companies are increasingly adding digital assets to their balance sheet. Below are highlights of the ins and outs of how they do it, and some lessons learned.
Strategy Remains the Flagship Case
CoinGecko traces Strategy’s transformation from a software company into the world’s largest corporate Bitcoin holder. Since pivoting in August 2020, Strategy has acquired about 640,800 BTC, roughly 3 % of total Bitcoin supply, and now manages holdings exceeding $70 billion USD.
See: GameStop Joins Growing List of Bitcoin Treasury Holders
The company funded these purchases through a mix of equity offerings, bond issuances, and preferred shares. Its stock has traded at premiums to its Bitcoin net asset value during parts of 2024, underlining investor appetite for exposure to corporate crypto reserves.
The Pace and Mix of New Buying
CoinGecko tracks at least $42.7 billion USD in new crypto purchases by DATCos between January and October 2025, with more than half occurring in the third quarter. Bitcoin accounted for roughly 70 % of total spend, Ethereum for 18 %, and Solana led among smaller allocations.
This acceleration reflects growing comfort with digital assets as long-term treasury instruments rather than short-term speculative holdings.
Who Holds the Most and What They Hold
As of November 2025, Strategy leads with $70.7 billion USD in Bitcoin. BitMine Immersion ranks second with combined Ethereum and Bitcoin holdings of $12.9 billion USD, followed by Sharplink, a major Ethereum holder.
The top group also includes Marathon Digital, Riot Platforms, Coinbase, Galaxy Digital, and Tesla. Together, the top 15 account for most corporate-owned digital assets.
See: New Hampshire First U.S. State to Legalize Bitcoin Reserve
Three Canadian-listed firms, Galaxy Digital, Hut 8 Mining, and Bitfarms Ltd., remain among the most significant international participants, confirming Canada’s status as a leader in Bitcoin and Ethereum treasury adoption. Both Galaxy Digital and Hut 8 are listed as U.S. firms on the tracker but they are registered and originated in Canada.
Treasury Snapshots for Bitcoin, Ethereum, and Solana
Bitcoin treasuries held by DATCos now total about 1.03 million BTC, equal to 4.9 % of total Bitcoin supply. Strategy alone holds roughly 61.5 % of that amount.
Ethereum holdings across DATCos reached 4.7 million ETH, or 3.9 % of supply, with BitMine Immersion responsible for about 69 % of the total.
Solana treasuries rose to 15.9 million SOL, about 2.9 % of supply. Forward Industries’ $1.65 billion purchase of 6.8 million SOL in September 2025 represents nearly half of all corporate Solana reserves.
4 Channels of DATCo Funding
CoinGecko documents four key financing methods that DATCos have been using to acquire crypto assets:
See: Fidelity Report Insights on Digital Assets in 2025
- Private placements and PIPE deals for initial seeding of corporate treasuries.
- At-the-market equity programs to raise capital when stock prices trade above net asset value.
- Perpetual preferred shares used to attract income-focused investors with fixed yields.
- Convertible senior notes debt instruments offering optional equity conversion for large-scale acquisitions.
Together, these options spotlight structured financing strategies that balance investor access with risk control.
Why Market Net Asset Value (mNAV) Matters
mNAV compares a company’s market capitalization to the value of its crypto holdings, which acts as a sustainability barometer. When mNAV falls below 1.0, raising new equity dilutes shareholders rather than adding value.
CoinGecko found several DATCos near or below that threshold in late 2025. As a result some companies paused new acquisitions, while others turned to preferred shares or buybacks to stabilize their valuations.
Lessons from Funding Limits and Early Consolidation
CoinGecko’s report offers several clear lessons from 2025’s wave of funding stress and consolidation among crypto treasury companies.
See: Trump Media and Crypto.com Launch Cronos Treasury Firm
1. Equity breaks when the stock weakens
When a company’s share price falls and its mNAV drops near or below 1.0, equity financing becomes uneconomical. Semler Scientific (SMLR) faced this in mid-2025, as weak stock performance made new issuance impossible and a shareholder vote to authorize preferred shares failed.
2. Mergers are the fallback when capital dries up
With no viable financing options left, Semler merged with Strive in September 2025. Consolidation often becomes the only path forward when market access closes.
3. Preferred shares can buy time but not certainty
After the merger Semler relied on preferred equity but its combined valuation still dropped by about 80 %, showing that preference structures help liquidity but not long-term confidence.
4. Low debt means room to diversify funding
Across all DATCos, outstanding debt stood near $12.7 billion USD, which is modest compared with roughly $200 billion USD in crypto assets, leaving space for responsible borrowing to reduce reliance on stock issuance.
See: FinTech’s Role in Modern Treasury Management: Streamlining Operations and Capital Optimization
5. Buybacks and preferred equity are short-term levers
Companies use buybacks or issue preference shares to support valuations when mNAV weakens. ETHZilla even sold Ethereum in October 2025 to fund a buyback (a rare reversal of the usual accumulation pattern).
6. Early stock spikes fade fast
Several DATCos saw share prices surge briefly after announcing digital asset strategies, then retreat as fundamentals reasserted themselves. Some cases drew regulator scrutiny for pre-announcement trading. Companies should not base treasury policy on short-lived market premiums.
7. Dividend transparency builds trust
Strategy’s perpetual preferred shares attract investors through structured yields, but questions remain when dividends are financed by new share issuance. Transparent funding disclosure maintains credibility.
Implications for Canada
At a time when Canada's policymakers are creating stablecoin rules, it can learn from these global cases by allowing fair-value accounting for digital assets, enabling multiple funding tools, and setting clear disclosure standards. Canada’s listed mining and fintech firms already play a leading role in corporate crypto adoption. Yet few non-mining public companies have introduced digital reserves.
See: Budget 2025 Accelerates Fintech, AI, and Capital Growth
By updating accounting rules, modernizing treasury disclosure, and piloting a Digital Treasury Sandbox, regulators could enable more smaller scale companies with well-governed asset allocations to improve competitiveness and financial resilience. Digital assets are now a recognized part of global corporate finance. Bitcoin remains the anchor, while Ethereum and Solana continue to gain traction.
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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