Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Fundraising, Investing, Trading
Ripple Acquires Rail for $200M to Boost Stablecoin Payments
M&A | Aug 8, 2025
Ripple's $200M Acquisition of Rail Strengthens Stablecoin Payment Capabilities
On August 7, 2025, enterprise blockchain digital payment leader Ripple announced that it's entered an agreement to acquire Rail, a Toronto-based stablecoin global payments platform for $200 million. The acquisition will boost Ripple’s stablecoin infrastructure and solidifies its position as a leader in the digital asset payments industry.
Rail’s Canadian Roots
Founded in 2021 by Bhanu Kohli and Tarun Mistry as Layer2 Financial, Rail is a Canadian-registered company based in Toronto, Ontario. The company's mission from the start was to build a platform that would enable instant, transparent, and reliable international payments for businesses using stablecoin technology alongside fiat support. Rail’s focus on combining digital asset infrastructure with compliance made it an ideal fit for a growing cross-border payments market.
In 2024, Rail rebranded to its current name and raised $10.7 million in Series A funding.
To date in 2025, Rail processed over 10% of the global $36 billion in B2B stablecoin payments, flexing it's growth and benchmarked market share.
Rail is officially registered in both Canada and the United States. Its registration as a money services business with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) and the U.S. Financial Crimes Enforcement Network (FinCEN) further underscores its commitment to meeting regulatory standards and building a trusted platform for cross-border payments.
Why Ripple and Rail Are a Great Fit
Rail's infrastructure improves Ripple’s stablecoin payment capabilities, especially in the growing B2B payments sector. Ripple has spent over a decade building digital asset infrastructure that integrates seamlessly with traditional finance. Ripple’s platform offers businesses secure, compliant tools for storing, trading, and transferring value, making it an ideal complement to Rail’s innovative stablecoin solutions.
See: Citi and BofA Plan Stablecoins as Regulation Advances
Monica Long, Ripple President:
“Stablecoins are quickly becoming a cornerstone of modern finance, and with Rail, we are uniquely positioned to drive the next phase of innovation and adoption of stablecoins and blockchain in global payments. Ripple has one of the most widely used digital asset payment networks in the world, and this acquisition underscores our commitment to helping our global customer base to move money wherever and whenever they need.”
Ripple's Expanding Offering and The Future of Payments
Ripple’s expanded offering will allow businesses to process stablecoin pay-ins and pay-outs across key financial pathways, such as USD, without needing to hold crypto on their balance sheets. This simplifies the payment process for companies and it's cost effective for international transactions.
Beyond stablecoin transfers, the Ripple-Rail offering will enable businesses to manage third-party payments and internal treasury flows seamlessly through a unified platform. Rail’s automated back-office infrastructure provides an always accessible 24/7 global payment network via a single API. So customers have access to a reliable payment solution at all times.
See: Ripple Seeks US Bank Charter for Stablecoin Expansion
Ripple also recently acquired a multi-asset prime broker Hidden Road for $1.25 billion on April 8, 2025.
In addition to the acquisitions, Ripple's growth is benefiting from positive regulatory sentiment in the U.S. The SEC dropped its case against Ripple regarding its XRP token, and the approval of the U.S. Senate's Genius Act earlier this year, establishing a framework for stablecoin regulation.
Bhanu Kohli, CEO Rail:
“Over the last four years, Rail built the fastest way to settle business payments internationally using stablecoins, and in 2025, Rail is forecasted to process over 10% of the $36B global B2B stablecoin payments. Ripple shares our vision, and together, we’re excited to bring our innovation to the millions of businesses that move money internationally.”
Why This Matters
By combining Ripple’s established network with Rail’s innovative stablecoin infrastructure solutions, the two companies will provide more comprehensive solutions for businesses that need to move money across borders. As stablecoin adoption continues to rise, businesses will increasingly look for solutions that simplify cross-border payments while ensuring compliance with global regulations.
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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Stronger Teeth Needed to Protect Canada’s IP
IP Policy and Competition | August 7, 2025
Image: FreepikWeak IP Policy and Procurement Choices Are Eroding Canada's Sovereignty
On August 6, 2025, there's an inspiring OpEd in the Financial Post by Jim Hinton and Alexis Conrad, who argued that Canada’s sovereignty is being eroded not by military threats but by the loss of control over its intellectual property. They warn in today's economy it's no longer about "flags, borders, boots on the ground" that define national strength but rather it's the intangibles, such as the source code, algorithms patents, and digital infrastructure that strengthen global leverage and competitiveness, and Canada's current approach to IP is giving it away faster than innovators can build them.
See: Canada’s Productivity Depends on Intangible Tech Adoption
Prime Minister Mark Carney has committed to raising defence spending to $150 billion annually by 2035. But Canada still lacks a framework to retain the intellectual property created through public investment. More than 50 % of university-developed IP ends up in foreign hands, often with no commercial benefit to Canadian firms. Patent office filings show transfers of Canadian-invented technology from Dalhousie to Tesla and from the University of Toronto to Google. Researchers from 50 Canadian universities co-authored work with Chinese military related scientists between 2005 and 2022. Foreign ownership of Canadian inventions and patents has tripled since 2001, now accounting for 56 % of the total.
Procurement Policy is Reinforcing the Problem
Canada’s first major contract under the new defence strategy for an arctic radar system valued at $6.5 billion was awarded to an Australian firm. Although there may not be an exact equivalent defence supplier in Canada, there was no public evidence showed that Canadian options were seriously considered. In cleantech, a Burnaby-based carbon capture pioneer Svante is considering a move to the U.S. after being excluded from Canada’s clean tech tax credits. These examples show that public funding and procurement are not aligned with long-term national control.
ElevateIP is a federal initiative created to help startups protect and manage intellectual property, but it lacks key structural elements. It does not require Canadian IP ownership or tie support to procurement or national priorities. It does not coordinate with university tech transfer or public research institutions. It does not track the outcomes of supported IP. As a result, it helps educate founders on IP strategy but offers no protection against IP loss or foreign transfer.
Fintech IP is Equally at Risk
The challenges raised by this article are highly relevant to fintech. Canadian fintech companies often rely on proprietary algorithms, transaction infrastructure, digital identity systems, and embedded financial technologies that qualify as intellectual property. But there is no policy ensuring that publicly supported fintech innovation remains in Canadian control. Many early-stage fintechs are spun out of university labs or supported by public accelerators. Without clear ownership conditions or commercialization requirements, they face the same risks as cleantech and AI firms via acquisition or licensing by larger foreign organizations that ultimately repatriate value outside of Canada.
See: Landmark Legal NFT Decision Favours Intellectual Property Owners
Fintech IP is also foundational to digital sovereignty. Payments, lending, credit scoring, open banking infrastructure, compliance automation, and digital asset platforms depend on core IP and data control. If these are owned abroad, Canada risks falling behind on financial inclusion, global competitiveness, and platform security.
Public funding that supports fintech innovation without securing ownership or commercialization rights fails to build long term value at home.
Why This Matters Now
Countries like the U.S., South Korea, and Finland have updated their strategies to secure domestic IP and use procurement as a growth lever. Canada still relies on outdated models. Innovation without ownership means financing someone else’s economy. Canada must close the policy gaps between research, funding, procurement, and commercialization if it wants to retain control of its own innovation pipeline and competitiveness.
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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Online Lottery Games for Real Money: How to Play and Win Safely
Aug 7, 2025
Image: Freepik
Online Lottery Games for Real Money offer a convenient way to participate in draws and potentially win cash prizes from home. These games follow the same basic principles as traditional lotteries, where players choose numbers and wait for a draw to see if they match. Some platforms also offer instant win games for quicker results.
To play safely, it is important to choose licensed and regulated websites that ensure fairness and protect personal information. Responsible play is also essential, which includes setting limits and understanding the odds. Online lottery games for real money can be enjoyable and rewarding when approached with caution and awareness. By following safe practices, players can experience the excitement of lottery draws with added convenience and security.
What Are Online Lottery Games for Real Money
Online lottery games for real money are digital versions of traditional lottery draws that allow players to participate and win cash prizes using internet-connected devices. These games typically involve selecting a set of numbers and waiting for a draw to determine if they match the winning combination. Some platforms also offer instant win options with quicker results.
Online lottery games for real money are designed for convenience, enabling players to enjoy the thrill of a lottery from home or on the go. They are available in various formats, including national draws and themed scratch cards. Many players choose these games for their simplicity and potential rewards. With secure platforms and clear rules, they provide a modern, accessible way to play and possibly win.
Key Differences Between Traditional and Online Lotteries
There are several key differences between traditional and online lotteries, each offering unique advantages. Traditional lotteries require players to buy tickets in person from licensed retailers and often involve physical draw events. In contrast, online lottery games for real money allow users to participate digitally from home or anywhere with internet access.
Another difference is convenience. Online platforms offer faster registration, automatic number selection, and instant notifications of results. Many online lotteries also provide access to international games that may not be available locally. Additionally, online lottery games for real money may include bonus features, promotions, or instant win options.
Overall, while traditional lotteries maintain a familiar format, online versions offer flexibility, global access, and a more modern way to play and win.
Types of Online Lottery Formats Available
There are several types of online lottery formats available, each designed to suit different player preferences. The most common format is the traditional number-draw lottery, where players select numbers and wait for a scheduled draw to determine the winners. These can be local or international lotteries.
Another popular option is the instant win game, which allows players to receive results immediately after purchasing a virtual ticket. These games often include scratch cards or quick-pick formats. Syndicate lotteries are also available, where a group of players pools money to buy more tickets and share any winnings.
Online lottery games for real money can include a variety of these formats, offering both excitement and convenience while giving players more control over how they participate.
How Online Lottery Games Work
Online lottery games for real money function in a simple yet secure way, making them accessible to a wide range of players. To participate, users create an account on a licensed platform, choose a game, and select their numbers or use an automatic number generator. After purchasing a digital ticket, they wait for the official draw or instant result, depending on the game type.
Results are typically displayed on the platform, and winnings are automatically credited to the player's account. Online lottery games for real money often include safety features such as secure payment methods and verification processes to protect users. These games provide the same excitement as traditional lotteries, with the added benefits of convenience, faster access, and a wider variety of formats.
Account Setup and Ticket Purchase
Setting up an account and purchasing tickets is a straightforward process for online lottery games for real money. Players begin by registering on a licensed website or app, providing necessary personal information and verifying their identity to ensure security. This step helps maintain the integrity of the platform and protects user data.
Once the account is active, players can browse available lottery games and select their preferred options. Choosing numbers can be done manually or through automatic selection features. After selecting the numbers, players proceed to purchase tickets using secure payment methods. Confirmation of the purchase is typically immediate, allowing players to participate in upcoming draws or instant win games confidently. This streamlined process offers convenience and accessibility to lottery enthusiasts worldwide.
Number Selection and Draw Process
Number selection and the draw process are fundamental aspects of online lottery games for real money. Players usually choose a set of numbers within a specified range, either manually or by using an automatic number generator. This choice determines their chances of winning based on how closely their numbers match the drawn results.
The draw process is conducted either through live events or using certified random number generators, ensuring fairness and transparency. Results are then published on the platform, allowing players to check if their selected numbers correspond to the winning combination. This procedure maintains the integrity of the game and ensures all participants have an equal opportunity to win. Clear communication of rules and procedures further enhances the player’s trust and engagement.
Where to Play Online Lottery Games for Real Money
Players seeking online lottery games for real money should choose licensed and reputable platforms to ensure security and fairness. Trusted websites and apps offer a wide selection of lottery games with transparent rules and verified draw processes. These platforms provide secure payment options and customer support to assist with any issues.
It is advisable to select services regulated by recognized authorities to protect personal data and guarantee legitimate payouts. Additionally, many platforms feature user reviews and ratings that can guide players in making informed decisions. Selecting the right platform is essential for a positive and trustworthy gaming experience.
Tips to Increase Your Winning Chances
Increasing your chances of winning in online lottery games for real money requires strategic planning and careful decision-making. One effective tip is to join lottery syndicates, which pool resources from multiple players to purchase more tickets, thereby increasing the odds of winning. Additionally, regularly playing less popular games with smaller jackpots can improve your chances since they often have fewer participants.
See: Coingecko 2024 Report: Investing in Tokenized RWAs
Another useful strategy is to use number selection tools that analyze past draw patterns to help choose combinations with better probabilities. It is also important to manage your budget wisely by setting limits to avoid overspending. Lastly, always play on licensed platforms to ensure fairness and secure transactions. Employing these tips can enhance your experience and potentially improve your success in online lotteries.
Final Thoughts: Enjoying Online Lottery Games for Real Money the Smart Way
Enjoying online lottery games for real money the smart way involves combining entertainment with responsible practices. Players should focus on selecting licensed and reputable platforms to guarantee security and fairness. Understanding the rules and odds of each game is essential to set realistic expectations and maintain enjoyment.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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AI Fintechs Attract a 242% Valuation Premium
AI Fintech Report | Aug 5, 2025
Image: Freepik
AI startups are Dominating Fintech Deal Flow in 2025 - Higher Valuations, Bigger Checks, and Faster Rounds
The latest Q3 2025 PitchBook report confirms an investment gap is being driven by a clear premium on automation and AI-enhanced infrastructure. PitchBook data shows that early stage AI-enabled fintechs are raising at a median pre-money valuation of $134 million. That is 242% higher than the $39.2 million median for non-AI peers. Startups with built-in AI capabilities have raised $3.5 billion across 171 venture deals so far this year, capturing 54.4% of total deal value. By comparison, non-AI fintech firms closed 195 deals but raised only $3 billion.
AI Premiums Are Largest at the Early Stage
The largest gap is at the early stage. AI-enabled fintech startups are raising at a median pre-money valuation of $134 million, compared to $39.2 million for non-AI peers. That is a 242% premium, the highest of all stages in 2025. Only the pre-seed and seed levels showed a small dip but Pitchbook attributes to limited disclosures and early year sample effects.
At the venture growth stage, AI fintechs are closing deals with a median round size of $50 million, compared to $30 million for non-AI fintechs, a 66.7% premium.
See: Vertical AI’s Inevitable Rise. Who’s At Risk?
Later stage AI fintechs are also attracting higher valuations. Their median pre-money valuation is $72.5 million, 6.7% higher than the $68 million median for non-AI companies.
Enterprise Fintech Leads in AI Adoption
Of all U.S. AI-enabled fintech companies, 80.3% are B2B. The most active segments are CFO stack (19.5%), wealthtech (18.4%), and financial services infrastructure (15%). These areas are drawing the largest funding rounds and investor attention.
In 2025, financial infrastructure AI firms raised $887.9 million, while non-AI peers in the same segment raised just $216 million. Ramp, Plaid, and Addepar each secured funding rounds of $200 million or more.
See: Global Rules Now Count Intangibles. So Can Canada
AI of course dominates the regtech sector with At the venture growth stage, AI fintechs are closing deals with a median round size of $50 million, compared to $30 million for non-AI fintechs, a 66.7% premium..
AI Startups Are Raising Bigger Rounds, Sooner
In 2025 to date AI fintechs are raising more money per round than their non-AI peers. The typical deal size for an AI fintech is $8.4 million, which is 7.7% higher than the $7.8 million median for non-AI companies. At the seed stage the gap is even wider. AI startups are raising $4.1 million per round, compared to $3.2 million for non-AI startups, a 28.5% premium.
These companies are not just raising more. They are also raising faster. The average time between funding rounds is 1.85 years for AI fintechs, slightly shorter than the 1.90 years it takes non-AI fintechs. The difference may seem small but it suggests that investors are more willing to write follow-up checks quickly when they see momentum and early results.
AI Exits Are Still Small but Acquisitions Are Picking Up
So far in 2025 exits for AI fintech companies remain limited. These companies have generated $10.6 billion in total exit value across 17 deals, but most of that came from one transaction. Chime’s IPO alone accounted for $9.1 billion. Without it, the remaining exits add up to just $1.5 billion, which is lower than the $2.3 billion recorded across 31 exit deals by non-AI fintech companies.
See: DPI Digital Finance Works. Why Is Canada Still Waiting?
On the other hand, mergers and acquisitions (M&A) are gaining momentum. AI fintechs have completed $20.7 billion in M&A activity across 24 deals so far this year. That puts 2025 on pace to match 2024, which ended with $53.2 billion in total M&A deal value for AI companies. Buyers are looking to speed up their internal AI capabilities, improve their product offerings, compete with new startups, and build stronger decision-making systems powered by data.
Outlook
AI is no longer optional for fintech companies that want to lead. Investors are rewarding AI first companies with faster funding, larger checks, and significantly higher valuations. These companies aren't just building automation tools but are quickly becoming the new infrastructure layer across enterprise finance, compliance, and infrastructure. It's pretty clear that founders who want to be globally competitive must build AI into the core of it's model, not the margins.
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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How Fintech is Shaping the Future of Canadian Gaming
August 5, 2025
Image: Unsplash/itsmpl
Much is said about the cultural shift surrounding iGaming and sports betting in Canada. The more important story, however, is economic. Provincial regulation is the driving force behind Canada’s gaming success, but without financial technology, it wouldn't go this far. Fintech, in its many forms, is quietly changing the rules of engagement for players, operators, and regulators alike. The stakes are high. In 2024, Ontario’s iGaming market alone brought in over $4.19 billion in revenue. Alberta is preparing to follow. Furthermore, with open banking reforms finally on the table, fintech has the opportunity to institutionalize itself as the core infrastructure of the gaming economy.
Canada’s Open Banking Shift
It’s not the flashiest headline in gaming, but make no mistake: open banking is about to be the MVP in Canada’s digital economy. After years of talk, 2024 finally saw legislation begin rolling out, giving Canadians control over their financial data. Think bank account access through secure APIs, no more screen scraping or workarounds.
For gamers, it means faster onboarding. Just connect and verify, and you’re good to go. Deposits, withdrawals, and even budgeting tools are built right into your platform of choice.
It’s a system built for people who want to bet, play uninterrupted, and move on.
For years, Canada has lagged in open banking. That changed in late 2024 when the federal government outlined a framework to give consumers more control over their financial data. In practical terms, the open banking system allows verified third parties such as fintech companies to access banking information with user consent. This opens the door to real-time KYC (know your customer) checks, faster onboarding, and in-platform account linking without tedious form-filling or manual uploads.
In a gaming context, this cuts user friction and platform costs. Deposits and withdrawals can be executed securely and instantly, making regulatory audits less painful.
There is also a secondary benefit: players can better track their spending. It’s early, but this is one of the more promising angles for enforcing responsible gaming through structural incentives rather than pop-ups.
Fast Payments
Canada’s Real-Time Rail (RTR) payment infrastructure is due for rollout in 2026. This is a case of better late than never. Its appeal is obvious. The infrastructure allows round-the-clock bank transfers and immediate settlement and offers the kind of reliability that’s been sorely lacking in batch-based systems.
The advantages are clear for online casino Ontario platforms and the upcoming regulated markets. Player deposits and withdrawals become instant, reducing the burden that customer service agents bear. In theory, this means fewer chargebacks, account freezes, and customer service escalations, all of which cost operators dearly.
It also levels the playing field. Smaller operators won’t need expensive integrations with legacy payment processors to compete. Fintech can plug them in directly to the national infrastructure.
Image: Unsplash/Luke Jones
AI Stops the Cheats
Everyone talks about AI bluffing its way through poker tournaments. However, the most valuable use of artificial intelligence in Canada’s gaming ecosystem is quietly running in the background, scrutinising transaction patterns and flagging anomalies at a speed no human compliance officer could hope to match.
AI’s growing role in fraud detection is becoming essential. With billions flowing through digital platforms, and more Canadians participating in regulated online betting, the threat is no longer theoretical. Identity theft, money laundering, and payment fraud are risks that fintechs can’t afford to ignore.
The more serious players in Canada’s fintech sector are training machine learning models to spot irregularities based on metadata, behavioural trends, and open banking feeds. The goal is early detection before issues become public, or worse, regulatory.
Meet the Canadian Fintech Heroes Powering It All
Let’s give some credit where it’s due. Homegrown fintechs like Nuvei are building world-class tools. The Montreal-based firm was named Payment Provider of the Year in 2024, thanks to its open-banking-powered instant transfers.
They’re not alone. Toronto-based Koho is creating wallet infrastructure that could soon let players reload balances at Canada Post counters. Wealthsimple and Neo Financial are pushing boundaries on digital ID and account linking.
These startups are building the rails that gaming and everything else will run on for the next decade.
How Fintech Helps Gamers
Much of fintech’s value to Canadian gaming platforms lies in what it quietly removes: friction, delay, and uncertainty. Players may never know what systems sit between their bank account and bet, but they feel the difference when everything works.
| Feature | What It Means In-Game |
| Open Banking | Connect your account instantly |
| Real-Time Rail | Withdraw and deposit anytime |
| Embedded Finance | Top-up without ever leaving your game window |
| Smart Risk & AI Tools | Safer play, better limits, fraud kept in the shadows |
| Local Fintech Integration | Better UX built specifically for Canadian players |
This isn’t tech for tech’s sake. It’s about giving players more time to enjoy the game, rather than dealing with unwelcome interruptions.
Image: Unsplash/Designtoasty
Why Fintech Is Gaming’s Silent MVP
Canada’s gaming market is a heavily regulated, highly competitive industry where trust, speed, and data governance are the new table stakes. Fintech is now writing the script, enabling everything from smoother gameplay to provincial oversight. While few players will ever see the real-time rails or know what open banking means, their experience and the industry’s sustainability will depend on it. For all the talk of games, the real game is financial infrastructure, and fintech, quietly and methodically, is winning.
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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SEC Launches “Project Crypto” to Unleash Crypto Innovation
Crypto | Aug 4, 2025
Image: Freepik/brgfx
America’s Crypto Power Play Is Real and Canada Needs to Pay Attention
American crypto leadership is back and this time it is strategic. On July 31, 2025, U.S. SEC Chairman Paul S. Atkins delivered a major policy address, American Leadership in the Digital Finance Revolution, outlining a full plan to onshore digital asset innovation and modernize U.S. capital markets.
The centerpiece of the announcement is Project Crypto, a leading Commission initiative that includes new guidelines for tokenized securities, decentralized finance, crypto custody, and financial super-apps. Positioned as a generational opportunity to return blockchain finance to American soil, the strategy aligns closely with President Trump’s policy direction and has immediate implications for Canada’s competitiveness.
Paul Atkins, SEC Chair:
“We will not watch from the sidelines. We will lead. We will build. And, we will ensure that the next chapter of financial innovation is written right here in America.”
Token Issuance Will Move Back Onshore
Chairman Atkins clear states that the SEC will no longer treat most digital assets as securities and will instead create rules that clearly define asset categories.
“Despite what the SEC has said in the past, most crypto assets are not securities.”
Confusion created by the Howey Test has discouraged entrepreneurs from launching token projects in the U.S., but this new framework will encourage American participation and investment. The changes are expected to enable capital formation for crypto projects, and reduce reliance on offshore entities.
Canadian regulators have long pointed to U.S. uncertainty to justify delay. With this new clarity, the bar has been raised. Canada’s sandbox models and exemptive relief approach now risk falling behind.
“A Cambrian explosion in innovation could occur if we stay true to this course,” - SEC Chair Atkins
Rules to Support Tokenized Funds and Super-apps
One of the more significant features of Project Crypto is the SEC’s support for platforms that offer multiple services, combining trading, lending, staking, and payments under a single license. This opens the door for fintechs and broker-dealers to offer tokenized stocks, stablecoins, and on-chain financial services together.
Chairman Atkins also emphasized the SEC’s willingness to enable tokenized capital markets across all asset classes. Read NCFA’s coverage of Robinhood's tokenized securities and tokenized funds for a look at how this trend is already reshaping investment models.
Decentralized Finance Will Be Allowed to Operate in the Open
The SEC now plans to support integration of DeFi into U.S. markets. Atkins outlined a vision for DeFi platforms that do not require intermediaries, provided they meet transparency and code publication requirements. This includes automated market makers and consensus-based networks.
See: SEC Considers DeFi With Innovation Safe Harbour
For Canadian DeFi builders, it's an opportunity to create a presence in a jurisdiction that now welcomes non-intermediated finance, further challenging Canada's policy approach in the space.
Stablecoin Regulation is Now Federally Standardized
With the signing of the GENIUS Act, the U.S. has created a formal federal regime for stablecoin issuance and oversight. The SEC plans to align its rules accordingly and support market structure legislation that complements the Act.
Canada’s own stablecoin policy is still being shaped. See NCFA’s article on stablecoin regulation in Canada for current developments under OSFI.
New Flexibility for Crypto Custodians and Compliance Tools
The SEC will revise outdated custody requirements and support multiple business lines under one registration. This will make it easier for new entrants and regulated institutions to provide safe crypto custody and enable self-custody options. The Commission also highlighted support for protocols like ERC3643 that embed compliance functions directly into token standards that support tokenization of Real-World-Assets (RWA).
Inclusive Public Engagement via Crypto Task Force Roundtables
As part of its strategy to gather industry insights and boost regulatory transparency, the SEC’s Crypto Task Force will host a series of roundtables across the U.S. from August to December 2025, focusing on issues like custody, tokenization, DeFi, and trading infrastructure. These sessions reflect the agency’s intent to involve stakeholders early in the policy creating process and to include perspectives from small crypto startups and innovators
Outlook
Project Crypto is a very real operational directive to all SEC policy divisions. A coordinated national policy backed by the White House and reinforced by the President’s Working Group on Digital Asset Markets.
See: U.S. Maps Out Plan to Lead World in Crypto
For Canada and much of the world, this means the U.S. is will now be one of the preferred destinations for digital asset ventures, tokenized capital formation, and DeFi projects. Canadian stakeholders must respond with a coordinated strategy of their own that modernizes regulation, supports responsible innovation, and protects sovereignty in financial technology. Canada cannot afford to watch from the sidelines. A future of digital finance is being built now, and the center of gravity is moving.
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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Trump Seeks Bank Plans for Fannie and Freddie IPO
Public Markets | Aug 1, 2025
Image: Freepik/ijeab
Trump Calls on Bank Leaders to Shape Fannie and Freddie IPO Plans
According to a Reuters report, President Donald Trump has begun private talks with the heads of the largest US banks about how to return Fannie Mae and Freddie Mac to the public markets. These two companies (government sponsored enterprises with private shareholders), which guarantee most American mortgages, have been under government control since the 2008 financial crisis.
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Trump has had meetings with bank CEOs, the discussions include executives such as Jamie Dimon from JPMorgan Chase, David Solomon from Goldman Sachs, and Brian Moynihan from Bank of America. The White House is gathering proposals on how a stock offering for Fannie and Freddie could work if the companies are moved out of federal conservatorship.
What's At Stake
Fannie Mae and Freddie Mac were taken over by the US government during the 2008 financial crisis when losses in the housing market threatened to bring them down. Since then they have returned to profitability and repaid the funds that the US Treasury provided at the time.
Trump has said on Truth Social that he wants to explore ways to bring these companies back to the stock market while keeping some form of government guarantee for the mortgage market. Fannie (FNMA) and Freddie (FMCC) shares have surged 8.72% and 14.8% respectively after news of the bank meetings.
How these companies are handled will have a direct effect on investors, banks, and taxpayers. A public stock offering could return value to shareholders and possibly reduce the taxpayer risk that comes with government control. At the same time, if guarantees remain in place, taxpayers could still carry some exposure to future losses.
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The Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, has said that the companies will remain in conservatorship for now. Any plan to sell stock or change their status would need approval from the President and would likely be debated in Congress.
Implications Beyond the U.S.
These changes are not just about the United States. Canadian pension funds, banks, and other institutions invest in American mortgage backed securities that are tied to Fannie Mae and Freddie Mac. A change in their structure could affect the value of these investments and may influence how Canadian regulators look at housing finance and risk management.
It is also possible that US mortgage reform could shift how capital markets treat housing assets, which in turn may influence borrowing costs and investor strategies across North America.
What Happens Next
The talks with the banks are at an early stage. In the coming months the White House is expected to receive detailed proposals from these financial institutions. From there, a plan could be developed that would outline whether there will be a public stock sale, how much government support would remain, and the timeline for any transition.
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Canadian investors and policy makers will be watching these developments closely. The scale of Fannie Mae and Freddie Mac makes any change in their structure important well beyond US borders.
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