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
Bitcoin Breaks ATH as Global Momentum Builds
Crypto | July 11, 2025
Image: BTCUSD Tradingview
Bitcoin High Fuelled by Record ETF Inflows, Tight Supply, and Rising Institutional Demand
Bitcoin just printed a massive green candle, BTC reaching a new all-time-high (ATH) of USD $118,000, boosted by institutional inflows, constrained supply, and regulatory momentum in global markets. At the same time, Canada is working to finalize long awaited rules to bring clarity to crypto exposure for funds and federally regulated financial institutions. Collectively, it's a rare convergence of events that are pushing up price. It's a timely opportunity for Canadian fintechs, fund managers, and policymakers to assess their positioning and prepare for what's next.
What Is Driving Bitcoin’s Breakout?
Global capital flows into Bitcoin are accelerating, as international financial markets interact with the asset.
1. ETF Inflows Unlock Institutional Demand
U.S. spot Bitcoin ETFs have attracted over $51 billion USD in net inflows since January 2025. These products are managed by firms like BlackRock and Fidelity, are offering institutional investors direct and regulated access to Bitcoin at scale. On July 9 alone, daily flows exceeded USD $1.18 billion.
2. Supply Constraints Are Driving Scarcity
Bitcoin balances held on exchanges have fallen to their lowest levels since 2017, according to Glassnode data. It means long term hodlers are accumulating and there are fewer sellers which tightens liquidity and pushes prices upwards during surges.
3. Short Liquidations Are Accelerating Gains
Roughly $1 billion USD in short positions were liquidated in early July, forcing traders to buy back positions at higher prices, creating momentum that further boosts demand and additional institutional entry.
4. US Policy Developments Are Building Confidence
The GENIUS Act cleared the Senate with a bipartisan 68–30 vote on June 17, 2025, establishing the first federal framework for stablecoins (see SEC Issues Covered Stablecoin Statement, Risks Remain), including issuer registration, reserve and audit rules, and oversight. Next up is a House vote during “Crypto Week” starting July 14. In March, the White House issued an executive order creating a Strategic Bitcoin Reserve stocked with seized BTC and a broader digital assets stockpile, which aims to treat Bitcoin as a national reserve asset.
5. Institutions Are Treating Bitcoin as Core Infrastructure
Major asset managers like Fidelity and BlackRock are incorporating Bitcoin as a foundational allocation. In May, U.S. spot Bitcoin ETFs saw a net inflow of $9.209 billion USD in just one week led by BlackRock’s IBIT and Fidelity’s FBTC. While global forces are transforming financial markets, what matters for Canadian fintechs and financial institutions is how Canada is responding.
Canada Working to Define Rules
OSFI Guidelines for Banks and Insurers
In February 2025, the Office of the Superintendent of Financial Institutions (OSFI) published its final guideline on crypto-asset exposures. Taking effect later this year, the new framework applies to all federally regulated banks and insurers. According to Norton Rose Fulbright, it establishes:
See: SEC Clears Crypto Staking. What It Means for Canada
- A requirement to fully deduct most crypto exposures from Tier 1 capital
- A 2% cap on Group 2 asset exposure (which includes Bitcoin) with enhanced supervision at 1%
- Formal expectations for reporting, governance, and risk measurement of crypto holdings
These rules are an important step in integrating crypto within Canada’s prudential regulatory system, and they provide institutions with clearer guardrails to support innovation while managing systemic risk.
CSA Investment Fund Amendments
On April 17, 2025, the Canadian Securities Administrators (CSA) finalized amendments to NI 81-102, the national rule governing mutual funds and investment products. These changes come into force on July 16, 2025.
As detailed by McMillan and McCarthy Tétrault, the new rules say that:
- Only alternative mutual funds and non-redeemable funds may directly hold Bitcoin or other eligible crypto assets
- Other fund types may gain exposure via crypto derivatives up to 10% of NAV
See: Russia’s State Bank Launches Bitcoin-Linked Bond
- Custodians must use cold wallets, carry insurance, and undergo third-party operational audits
- Pricing must use regulated, reliable, and independent valuation sources
What This Means for Canadian Fintechs and Fund Managers
The OSFI and CSA frameworks are opening clearer paths for new crypto products and more diversified portfolios. Fund managers can now launch Bitcoin-focused vehicles with defined rules around eligibility, custody, and risk.
Banks and insurers must begin planning for capital and governance policies that align with OSFI’s exposure thresholds.
Fintech platforms have more certainty when adding Bitcoin related features, with legal and compliance expectations now taking shape.
These changes also raise the bar for investor protection, requiring firms to strengthen disclosures, improve internal oversight, and adopt secure custody practices.
Closing Thought
Another Bitcoin ATH is worth celebrating but the deeper trend is about normalization. Not too long ago, crypto assets were speculative but they are now moving to regulated infrastructure.
See: Tariff Revenue Hits Record as Canada nears U.S. Trade Deadline
Canada is positioning itself to participate in a more stable and credible digital crypto future, and there's growing alignment between global investment flows and domestic regulatory action, providing fintechs and capital providers with greater clarity and confidence than ever before.
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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Peirce: You Can Tokenize Securities but Not Skip the Rules
Tokenization | July 10, 2025
Image: Freepik
SEC’s Hester Peirce Confirms Tokenized Securities Are a Go but Must Still Comply With Rules
On July 9, 2025, U.S. Securities and Exchange Commissioner Hester Peirce (aka Crypto Mom) issued a clear statement about tokenized securities: "Tokenization may facilitate capital formation and enhance investors’ ability to use their assets as collateral" but they are still subject to existing securities laws.
See: SEC Issues Covered Stablecoin Statement, Risks Remain
Her comments are directed at companies using blockchain technology to issue or trade digital versions of financial instruments like stocks or bonds. Major U.S. firms such as Franklin Templeton, BlackRock, and Robinhood are already exploring tokenized fund structures and products.
Hester Perice, SEC Commissioner:
“Calling a token representing a security by a different name or moving it to a blockchain does not change its fundamental nature,"
“Tokenizing securities does not render them unrecognizable to our existing rule set. If you issue or trade a tokenized version of a stock or bond, you still must comply with the relevant rules.”
Her statement confirms that registration, disclosure, custody, and investor protection rules apply whether a security is paper-based or tokenized. As more and more firms turn to blockchain to modernize capital markets, the SEC is reminding them that the legal definitions of securities have not changed.
See: OSFI Drafting New Framework to Regulate Stablecoin Issuers
She highlights two categories of tokenized securities and in both cases full compliance is required: (1) those issued directly by a company and (2) those created by a third party based on an existing security.
She also cautioned that third-party tokenization can raise new risks, especially if the offering is misleading or undermines investor protections.
“A third party seeking to tokenize someone else’s security must ensure that such efforts are not misleading, do not violate the securities laws, and do not compromise investor protections.”
Why Tokenization Matters
Blockchain infrastructure can improve how markets operate. Tokenization allows for faster settlement, greater transparency, and lower administrative costs. It also enables fractional ownership, which can make investing more accessible. Restrictions can be built in and help enforce compliance automatically, some platforms may also offer 24/7 continuous trading access.
See: Coinbase Pushes for Tokenized Equities Approval
In Peirce’s view, innovation and regulation don't have to be in conflict:
“We should consider exemptions, no-action relief, or other tailored regulatory accommodations where the benefits of blockchain technology can be realized without undermining investor protections.”
Implications for Canadian Fintechs
The SEC’s position does not change Canadian law, but it provides useful direction for NCFA members and fintechs active in U.S. markets. In Canada, tokenized offerings must comply with securities rules. If a financial product is a security under Canadian law then it's subject to regulation.
Canadian fintechs exploring tokenization should expect scrutiny on custody, disclosures, and investor onboarding. Issuers must also ensure that the technology used does not obscure risk or circumvent investor rights. Regulatory engagement is key.
See: Coingecko 2024 Report: Investing in Tokenized RWAs
Peirce's statement shows that regulators are open to innovation but only if it maintains transparency and investor safeguards.
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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Tariff Revenue Hits Record as Canada nears U.S. Trade Deadline
Trade and Tariffs| July 10, 2025
Image: Freepik/rawpixel.com
U.S. Tariff Revenue Soars to $100 Billion as Canada Faces July 21 Trade Deadline
As of July 8, 2025, Reuters reports that the U.S. has collected about $100 billion in tariff revenues in 2025, and according to U.S. Treasury Secretary Scott Bessent, tariff revenue projections could reach $300 billion by the end of this year.
See: U.S. Tax Bill Could Drive Capital Back to Canada
Customs duties in May alone reached $22.8 billion or almost 4x the amount one year prior. While the White House views this revenue as a fiscal benefit, economists caution that tariffs create economic distortions, raise costs for importers, and increase prices for consumers.
Revenue Claims Fact Check
FactCheck.org analyzed Treasury data and found that U.S. customs and tariffs generated $37.8 billion in April and May combined, with $22.2 billion in May alone, which is well below the $88 billion those months were referenced to yield, let alone the larger $122 billion claimed later. It highlights how public statements about tariff income often exceed actual collections.
Canada’s Export Decline and Digital Services Tax Dropped
The Business Council of Canada reports that Canadian exports to the U.S. dropped 26.5% year-over-year, with Canada's share of exports to the U.S. falling from 78% to 68%.
Export volumes fell 10.8% in April before seeing a small 1.1% rebound in May but remain historically low. The Business Council of Canada warned that this declines is another “wake-up call” with advocates pushing to diversify trade into Southeast Asia, and move ahead with the One Canadian Economy Act .
Canada’s proposed 3% digital services tax was supposed to raise C$7.2 billion over five years but was dropped by PM Carney late June after it triggered the suspension of trade talks .
According to The Guardian, Nobel laureate economist Joseph Stiglitz warned that Canada's repeal represents “a troubling precedent for economic sovereignty,” describing it as a resignation to U.S. economic coercion instead of a strategic trade policy.
New Round of U.S. Tariffs Skips Canada for Now
On July 7, Trump issued letters announcing tariffs between 25–40% to start August 1 on imports from 14 countries, including South Korea and Japan. Canada wasn't included on this list but is still subject to existing 25% tariffs on steel, aluminum, and autos, along with 10% U.S. duties on energy and potash not covered by CUSMA. Copper tariffs are also in Trump's sights which is another concern. The S&P 500 fell nearly 1%, it's largest global drop in weeks following the tariff letter announcement.
Fintech Feeling the Strain
Tariff uncertainty is directly affecting Canadian fintechs. Cross-border payment providers are facing higher Foreign Exchange (FX) costs and more regulatory complexity.
See: DPI Digital Finance Works. Why Is Canada Still Waiting?
Trade finance platforms have warned that rising tariff uncertainty is leading to higher invoice default rates among SME exporters and creating pressure on fintech services who need predictable trade flows.
According to PYMTS, many fintechs are accelerating adoption of tokenized receivables and embedded credit insurance tools to help manage risk, speed up funding, and reduce exposure to trade disruption.
“Tokenization… offers the potential to streamline the inefficient $9.7 trillion trade finance market.”
What Comes Next
Canada and the U.S. are negotiating a new security and economic partnership with a July 21 target date but without consequences for missing the deadline, extended talks will cause further economic harm. And if there is no deal, Canada could move forward with retaliatory tariffs while providing targeted relief, which could include SME and export-orientated fintechs.
See: The Crisis Canada and Fintech Can’t Afford to Waste
Looking to diversify and reduce reliance on U.S. markets, Canada is moving quickly to finalize a free trade agreement with Southeast Asian nations. Foreign Minister Anita Anand confirmed that “work is being done with alacrity to finalise the text of the free trade agreement” with ASEAN, adding that economic cooperation will also include energy, food security, digital economy, and artificial intelligence.
Outlook
The July 21 deadline will impact Canada’s exports and redefine trade, innovation, and the financial ecosystem, as it impacts geopolitical volatility, SME access to financing, and investor perceptions. This is a decisive moment for Canada’s economic resilience and fintech innovation.
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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DPI Digital Finance Works. Why Is Canada Still Waiting?
Digital Finance Public Infrastructure Report | July 9, 2025
Image: Freepik/Rawpixel.com
Most Countries Have Adopted Digital Public Infrastructure. Where Does Canada Stand?
The Cambridge Centre for Alternative Finance (CCAF) just published a new report, "Digital Public Infrastructure (DPI) and Digital Financial Services" (69 page PDF) showing that 113 countries have adopted at least one DPI building block. Over half have adopted all three: digital identity, real-time payments, and consent-based data sharing. DPI is not just a policy trend. Countries with strong DPI systems result in much better financial inclusion outcomes. Canada, however, is still working on its foundational pieces.
What Is DPI and Why It Matters
According to the World Bank Group, DPI refers to digital systems like ID, payments, and data exchange platforms that support public and private services. These systems work best when they are (1) Interoperable, (2) Open for innovation, and (3) Designed for public benefit.
See: Will Competition Reforms Boost Fintech? Inside the Fight
According to the CCAF report, there are three core components of Digital Public Infrastructure:
- Digital Identity to prove who you are online and access services
- Real-Time Payments to send and receive money instantly
- Consent-Based Data Sharing to give users control over their financial data (aka, open banking/finance)
These systems help reduce fraud, speed up services, and lower costs for businesses and consumers. Most importantly, they help more people access the financial system.
DPI Adoption
The CCAF report shows clear adoption patterns with 113 jurisdictions having implemented at least one core DPI component, and 56 jurisdictions having adopted all three components. That includes countries with advanced economies and strong financial sectors, so they are relevant comparators for Canada such as:
- Australia
- Singapore
- Estonia
- Switzerland
See: Canada’s Productivity Depends on Intangible Tech Adoption
Other high-income countries, such as the United Kingdom and United States, are making progress but fall short of full DPI readiness due to gaps in national digital identity or regulated data sharing.
DPI Readiness - Canada vs Peer Jurisdictions
| Country | Digital Identity | Real-Time Payments | Consent-Based Data Sharing | Full DPI (All 3)? |
| Canada | ❌ No national ID | ❌ No live system | ❌ Proposed Consumer Driven Banking Act | ❌ |
| Australia | ✅ MyGov/MyID | ✅ NPP live | ✅ Consumer Data Right (CDR) | ✅ |
| Singapore | ✅ Singpass | ✅ PayNow | ✅ MAS APEX + open finance | ✅ |
| Estonia | ✅ e-ID/X-Road | ✅ SEPA Instant | ✅ Full integration | ✅ |
| Switzerland | ✅ e-ID live | ✅ SIC | ✅ I14Y platform | ✅ |
| UK | ❌ No national ID | ✅ FPS | ✅ Open Banking | ❌ |
| US | ❌ No national ID | ✅ FedNow | ❌ Market-driven only | ❌ |
How DPI Impacts Financial Inclusion
CCAF cross referenced data from the World Bank’s Global Findex to compare outcomes across countries. It grouped countries by how many DPI components they had in place.
See: Global Open Finance Lessons for Canada’s Rulebook
| Indicator | Countries with 1 DPI component | Countries with 3 components |
| Own a debit or credit card | 25% | 77% |
| Use digital payments | 45% | 83% |
| Borrow from formal institutions | 15% | 38% |
| Receive government transfers | 14% | 28% |
| Say lack of ID prevents account access | 19% | 7% |
| Find it very difficult to raise emergency funds | 34% | 19% |
The data-driven and outcome message is clear. More DPI means better access to financial tools and stronger financial resilience.
Where Canada Stands on DPI
According to the CCAF’s global DPI landscape, Canada is in the exploratory or early development stage across all three DPI pillars. Each area has seen policy activity, but none are fully operational, which NCFA agrees.
- Real-Time Payments - led by Payments Canada, Canada’s Real-Time Rail (RTR) initiative has faced repeated delays. As of July 2025, there is no real-time payment system available to the public.
- Digital Identity - While Canada has launched federal digital credentials pilots, Canada does not yet have a nationwide, interoperable digital identity framework. Adoption is fragmented.
See: The Crisis Canada and Fintech Can’t Afford to Waste
- Consent-Based Data Sharing - The proposed Consumer-Driven Banking Act, announced in 2023, outlines a path toward open banking. However, no implementation timeline has been met, and no system is in place. The Financial Consumer Agency of Canada has been named as the lead regulator.
“Planning status indicates that foundational DPI systems are under discussion or development but are not yet implemented at scale in a way that enables key financial use cases.”
Benefits of DPIs for Canadians
DPI is more than just government infrastructure. The report highlights that public-private partnerships are key to scaling systems that reduce onboarding costs, improve access to credit, and allow fintechs to innovate securely. Countries with strong DPI frameworks offer:
See: How Fintechs Are Tackling Financial Inclusion in Canada
- Faster user verification through eKYC
- Lower costs for payments and data services
- Stronger consumer protections tied to consent
Call to Action
It’s time for Canada to take action and build. No more delays. We cannot expect to maintain our quality of life or Canada’s global economic position without bold steps forward. Digital public infrastructure is no longer optional. It's foundational and without DPI, Canada’s fintech sector remains limited in how it can compete, scale, or serve excluded groups.
Moving from strategy to execution is the only way to close the gap. Without it, the country risks falling further behind. It is a public good that lifts access, speeds services, and builds trust. Countries that move fast, collaborate across regulators, industry, and communities are seeing real results. Canada has the policy tools, the tech capacity, and the industry support to do the same. But time is running out to catch up.
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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Bridging Canada’s Advice Gap with Global Insights
Financial Advice | July 8, 2025
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The UK is Enabling New Financial Advice Models. Should Canada Act Too?
In the UK, the Financial Conduct Authority (FCA) has proposed a new approach to tackle the issue of improving access to financial advice, so people can make informed investment decisions. The FCA is calling this a 'once in a generation' reform that would let firms provide targeted and simplified financial advice to underserved populations without the regulatory burden of full-service advisory. Should Canada be exploring a similar path?
On June 29, 2025, the FCA released a consultation in effort to alter how financial guidance is delivered. According to the regulator, only 9% of UK adults received regulated advice in 2024. At the same time, over 7 million people are holding more than £10,000 in cash without investing it. The proposed rules include two core categories:
- Targeted support would allow firms to provide grouped financial nudges based on shared characteristics, such as young adults holding idle savings or retirees at risk of over-drawing retirement accounts. This type of guidance could be delivered digitally without full fact-finding.
- Simplified advice would allow firms to offer limited product recommendations to individual clients without conducting full suitability assessments currently required. These rules are intended to reduce compliance costs and encourage firms to serve every day clients.
See: Where the Gaps Are: Fintech Insights from FCA Data
The FCA expects around 100 firms to offer services under these reforms by April 2026. The proposal aims to support better outcomes for consumers while still protecting investors.
Canada’s Investment Advice Landscape
In Canada, regulated investment advice is tightly controlled. Firms offering investment recommendations must be registered with a provincial securities regulator and meet strict know-your-client (KYC) and suitability obligations. This approach is critical for investor protection but it creates high cost and operational barriers for reaching clients with modest portfolios.
The FCAC’s National Financial Literacy Strategy 2021–2026 emphasizes its mandate to enhance Canadians’ financial knowledge and resilience, but efforts so far rely heavily on education, tools, and public awareness. The CSA’s Investor Education Committee has launched social campaigns, investor alerts, and literacy tools to empower Canadians to make informed financial decisions.
According to CSA research, more than 40% report low confidence in their investment knowledge. Findings show a decline in advisor use (down to 61%), while DIY attitudes rise (45% have self-directed accounts), raising concerns about whether Canadians have sufficient knowledge and confidence to manage investments on their own.
Robo-advisors and the Evolving Opportunity
Canada’s robo-advisor market is expanding swiftly. Wealthsimple alone manages over $70 billion CAD (as of June 2025), Questrade’s Questwealth holds $30 billion CAD (early 2020), and even more growth is expected as digital investing gains traction, with services increasingly adopted by younger investors. These platforms offer digital-first, affordable investment tools, but remain constrained by current regulatory expectations.
See: Report Insights: DIY Investors in Canada on the Rise
By contrast, the FCA's framework could allow robo-advisors to deliver access to simpler advice or proactive guidance based on behavioural data. These changes have the potential to increase access while reducing costs, without compromising key investor protections. In Canada, any comparable flexibility would require regulatory change.
Finfluencers and Informal Advice
Another growing channel for financial guidance is social media. In Canada, 82% of Gen Z investors report following influencers for financial tips, and 44% believe online advice is as useful as traditional advisors. While some content is educational, the Ontario Securities Commission and Alberta Securities Commission have raised concerns about unregistered finfluencers promoting securities without appropriate disclosures.
If Canada created space for fintechs and advisors to offer low-cost, regulated advice digitally, it could reduce dependence on informal and sometimes misleading content. The FCA’s 'once in a lifetime' reforms aim to do just that, offering a model Canada could adapt to fit our regulatory landscape.
Outlook
Canada’s fintech innovators are capable of building trusted, scalable tools to help close the advice gap. But changes to regulatory structures need to happen to support new delivery models. The FCA’s targeted support and simplified advice categories are a good benchmark and approach. Canadian regulators and policy makers should be exploring how to safely expand access to financial guidance that is compliant, cost-effective, and in the public interest.
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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Ripple Seeks US Bank Charter for Stablecoin Expansion
Crypto Banking | July 7, 2025
Ripple Moves to Become a Federally Regulated Bank to Expand its Payments and Custody Business
Ripple has officially applied for a national bank charter from the US Office of the Comptroller of the Currency (OCC). The company is also seeking a Federal Reserve master account to support direct access to US payment rails.
See: Grayscale ETF Wins SEC Approval for 5 Crypto Assets
CEO Brad Garlinghouse confirmed the news on X:
True to our long-standing compliance roots, @Ripple is applying for a national bank charter from the OCC. If approved, we would have both state (via NYDFS) and federal oversight, a new (and unique!) benchmark for trust in the stablecoin market.
Earlier in the week via… https://t.co/IdiR7x3eWZ
— Brad Garlinghouse (@bgarlinghouse) July 2, 2025
Ripple Wants to Settle Payments Directly With the Fed
If approved, Ripple would bypass correspondent banks by settling payments directly with the Fed and holding dollar reserves without intermediaries. This is designed to support Ripple’s push to offer a compliant, enterprise-grade stablecoin and accelerate global payments. These objectives align with new federal rules proposed under the GENIUS Act, which sets clear reserve and disclosure standards for stablecoin issuers.
Ripple’s approach mirrors that of Anchorage Digital and Circle, which operate under national trust bank charters regulated by the OCC. Ripple may use its regulated subsidiary, Standard Custody & Trust, to separate digital asset exposure from its core balance sheet. This structure could help the firm meet Basel III capital requirements by keeping volatile assets like XRP off its banking books.
Following the announcement, XRP surged above $2.28 as trading volume spiked. Analysts said the rally was driven by rising confidence that Ripple’s regulatory strategy will boost its long-term institutional credibility.
Why This Matters for Fintech and Regulation
If Ripple is granted the charter and Fed account, it will become one of the few crypto-native firms operating fully within the traditional banking system. It's a significant and growing trend among major fintechs like Circle, Wise, and others seeking deeper integration with regulated payment rails. For Canadian fintechs and regulators, Ripple’s move could accelerate the need to clarify stablecoin policy, custody standards, and access to domestic settlement infrastructure. Regulatory certainty is a competitive advantage today and quickly becoming the norm.
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 Tokenizes Stocks and Launches Blockchain
Tokenization | July 3, 2025
Image: Freepik
Robinhood Opens Tokenized Equity Trading, Staking, and Futures Access While Building a New Digital Assets Blockchain
On June 30, 2025, Robinhood announced a major expansion into tokenized assets and crypto infrastructure during an event in Cannes. The company’s official release detailed its launch of tokenized U.S. equities for EU users, new staking and derivatives products, and the development of a proprietary Layer 2 blockchain designed to support real world asset (RWA) tokenization. It's a clear pivot and global crypto strategy that could define the future of hybrid investing platforms.
Tokenized stocks and ETFs in the EU
Robinhood will allow European Economic Area (EEA) users to buy and sell tokenized versions of over 200 U.S. stocks and ETFs. These digital assets come with no commission, no spread, and include dividend payments, mirroring their traditional equivalents while trading continuously during the week. The tokens are initially issued on Arbitrum but will transition to Robinhood’s newly announced Layer 2 blockchain, which is being developed specifically to support RWA tokenization, self-custody wallets, and instant settlement.
See: Robinhood Acquires WonderFi for C$250M
The EU rollout aims to open access to U.S. equities for hundreds of millions of crypto-enabled users. The goal is to create a multi-asset investment experience that spans stocks, ETFs, and digital currencies all on one unified platform.
Crypto Staking and Perpetual Futures
Robinhood’s expansion also includes the launch of crypto perpetual futures contracts for Bitcoin and Ethereum. These will be offered with up to 3× leverage across eligible EU users, with order routing handled through Bitstamp’s regulated platform. At the same time, Robinhood has introduced staking support for Ethereum and Solana. Staking is already live in the EU and will expand to U.S. users where legally permitted.
Robinhood is also offering deposit incentives, including bonuses of up to 2% on incoming crypto transfers, with the company targeting up to $500 million in new crypto inflows.
Launch of Proprietary Layer 2 Blockchain
Robinhood confirmed that it is building its own Layer 2 blockchain. The network will enable fractional ownership of stocks and ETFs, wallet-native asset recovery, smart contract interoperability, and real time cross-chain bridging. It will also provide the infrastructure for on-chain settlement of financial instruments such as tokenized equities and derivatives. Having it's own blockchain will reduce dependence on third parties while positioning Robinhood to eventually become the protocol layer for its own assets and services, including digital custody and regulated RWA trading.
Rewards, AI, and Advanced Crypto Tools
Robinhood also launched a crypto rewards credit card, allowing users to automatically convert cashback into digital currencies. In addition, the company now lets users choose which crypto or stock purchases to sell first for tax purposes, smart order routing, and high frequency charts designed to support more active traders. A new AI assistant called Cortex is being integrated into the app, offering personalized alerts, market trend recognition, and portfolio analysis for premium users.
See: Robinhood’s WealthTech Push and Lifestyle Finance
All of these updates are part of Robinhood’s broader strategy to become a comprehensive investing ecosystem that spans traditional equities, digital assets, and blockchain infrastructure.
Why This Matters
Robinhood’s stock rose by more than 12% following the announcement. As reported by MarketWatch, the SEC also sent market signals that may be interpreted as supportive. Robinhood has taken advantage of the EU's open approach towards digital finance and pilot models that aren't yet permitted in Canada, raising an important question: if tokenized equities are safe and functional for the EU, what regulatory barriers continue to hold back innovation in Canada?
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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