Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Innovation and Resources
S&P 500 Perpetual Trading Goes 24/7 Onchain
Mar 19, 2026 | NCFA Market Activity | Digital Assets
S&P 500 Perpetuals Launch On Hyperliquid
On Mar 18, 2026, licensed S&P 500 perpetual trading went live on Hyperliquid through Trade[XYZ]. The product gives eligible non US investors 24/7 access to leveraged long or short S&P 500 exposure without expiry. A core global equity benchmark now trades onchain 24/7.
Liquidity Starts To Move
S&P says its linked ecosystem drives $1T daily trading across futures, options, ETFs, and structured products. Moving that benchmark into a perpetual format allows liquidity to form before traditional sessions open. Early demand for the product already looks real. Decrypt reported $10M open interest shortly after launch, while S&P’s release says Trade[XYZ] markets on Hyperliquid have already cleared $100B volume since October 2025 and are running at more than $600B annualized.
See: Fortune 100 & 500 Embrace Blockchain, Driving Onchain Growth
Price discovery no longer has to wait for markets to open. If more benchmark trading starts off hours on crypto venues, traditional exchanges risk following market moves instead of leading them. Even a modest change in where liquidity shows up first can change how volatility spreads across markets.
Why Operators Should Care
Investors now have a route to benchmark exposure at any hour, across borders, on a venue built for continuous trading. That changes expectations around access, monitoring, and response time for exchanges, brokerages, data analytics and risk teams. It also raises risk with reports that the product can offer leverage up to 50 times, which means off hours trading can bring sharper liquidations and sweeping moves when order books are thin.
The global implication is bigger than one listing. A major index owner has opened a new channel for benchmark access on chain. That puts pressure on incumbents that still depend on fixed sessions, regional access, and legacy infrastructure. If this model gains traction, exchanges will need to defend their role not just on liquidity depth, but on speed, availability, and product reach.
Canadian fintechs, dealers, market infrastructure firms, and regulators should pay attention to how benchmark access is changing. If clients start expecting round the clock exposure and faster market response, organizations that stay tied to old windows may lose ground. Firms that build around new access patterns, stronger risk tools, and better market visibility will have a chance to capture more of the next layer.
See: SEC Crypto Interpretation Resets Market Structure
This is not just a crypto wrapper on a known index. It is an early sign that benchmark distribution is starting to move onto new rails. The firms that adapt early can help shape where liquidity, data, and customer activity go next.
Outlook
The next phase will depend on where liquidity builds and how quickly institutions respond. If trading depth increases on these venues, more benchmarks, sectors, and asset classes will follow into perpetual formats. That would push exchanges, clearing systems, and regulators to respond to a market that no longer operates in sessions. However, if liquidity remains thin, these products will stay a niche trading layer. The open question is how fast global capital markets will adjust to always on 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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Razorpay Agent Studio Targets Payment Operations
Mar 19, 2026 | NCFA Fintech Market Activity | Payments Operations And AI
AI Agents For Payment Operations Automation
On Mar 12 2026, Razorpay launched Agent Studio, a product it says lets businesses build and run AI agents across payment and post payment workflows. Razorpay says the system is built on Anthropic’s Claude Agent SDK.
Based in Bengaluru, India, Razorpay was founded in 2014 and has grown into one of India’s largest payment platforms. The company says it supports millions of businesses, reaches more than 300 million end consumers, and processes about $180 billion in annualized payment volume. Its stack spans payment acceptance, processing, disbursements, payouts, and business banking through RazorpayX.
Agent Studio targets the operational layer that sits around those flows. In its launch post, Razorpay lists agents for dispute response, subscription recovery, abandoned cart follow up through WhatsApp or email, settlement summaries delivered through messaging, and cashflow forecasting over a 3 to 7 day window. It also includes tools for cash on delivery orders, such as identifying and analyzing returns sent back to the seller.
See: Global Payments to Reach $2.4 Trillion and Tokenized Future
These workflows cost merchants and payment teams money every day. Disputes create losses and take time to resolve. Failed recurring payments reduce revenue. Abandoned carts lower completed purchases. Cash on delivery returns add shipping and handling costs. Razorpay is building automation around these problem areas, not just the payment itself.
The company is also introducing a no code agent builder in beta and plans to open the system to third party agents. That points to a setup where merchants choose automation for specific tasks across the payment lifecycle, instead of relying only on bundled platform features.
This extends Razorpay’s recent work on AI driven payments, including its earlier work with NPCI on agentic payments to enable AI driven transaction flows. The focus now moves to what happens after a payment, where recovery, customer support, and problem cases still rely heavily on manual work.
Acceptance rates and pricing are still important for PSPs and merchant platforms. Operational efficiency is becoming part of the core value proposition, especially where it directly improves recovery and reduces cost.
Talking Point
If agents handle disputes, recovery, reporting, and cash on delivery losses, does competition start to favour the provider that cuts the most cost for merchants, not just the one with the lowest processing price?
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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Why IT leaders who hide their weaknesses lose their team and their business
March 19, 2026
For a long time, it was believed in the business world that a leader should project nothing but confidence. Why does this model cease to be effective in IT?
The stereotype of the ‘invulnerable leader’ took shape back in the days of rigid hierarchical structures. In IT projects, everything changes very quickly and there is a great deal of uncertainty — and at this point, such a model becomes detrimental to the business. When a leader tries to appear flawless, they create a distance.
Employees stop raising issues at an early stage, as they fear they will fall short of the ideal that has been set. The manager gets a distorted picture, and for an IT project, this is critical.
What is the danger of the ‘unspoken’ risk, and what does it mean for the business?
The ‘unspoken’ is a void that the brain fills in itself. And it most often fills it with negative thoughts and emotions. If a manager remains silent about difficulties, the team begins to think: ‘There’ll probably be redundancies, the project will be shut down, or the money will run out.’ Anxiety grows, people put less effort into the project, or they resign. Competent openness, on the other hand, fills this void with explanations — and the tension dissipates.
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Won’t admitting vulnerability, such as feeling nervous before an important pitch, undermine the founder’s authority in the eyes of investors?
On the contrary. Investors invest in the founder’s competence. Someone who speaks honestly about risks and their state of mind comes across as someone who is truly in control of the situation. Admitting vulnerability is not a complaint from a weak leader, but a statement of fact. For example, when we were developing Matthew Eat Bot, we openly discussed the challenges of integrating with external APIs with the team. Such honesty shows that we understand the scale of the task and are prepared for it, rather than simply ignoring the obstacles.
How does this approach affect internal processes within the team?
It makes the human factor a normal and natural part of the work. If a manager can say, ‘I’m worried about this release,’ then employees are also entitled to be just as honest. At Gratio, this helps to quickly identify any issues. People don’t waste energy pretending to be perfect; they simply do their jobs well. Trust in this context translates into real savings: faster communication and fewer unnecessary costs.
See: How Fintech Teams Move From Tools To Agents
Where is the line between ‘thoughtful openness’ and excessive emotionality, which might scare off partners and investors?
The line lies in the purpose. A leader shares their vulnerabilities not to elicit sympathy, but to create a safe working environment. Openness must be practical: if you’re discussing a problem, immediately show how to solve it, or ask for specific help. This is a working conversation, of which there may be as many as a hundred during the process. The main goal is one: to make the business more sustainable through honest relationships between management and the team.
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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Canada Tipping Backlash Payments UX Takes Heat
Mar 18, 2026 | NCFA Fintech Market Insight | Payments And Consumer Finance And Tax
Tip Prompts Trigger Boycotts And Tax Confusion
On Mar 17 2026, H&R Block Canada revealed tipping survey results putting new numbers behind a growing consumer reaction to tip prompts at checkout. Two thirds of Canadians or 67% say Canada should abolish tipping culture. Another 93% say they feel annoyed when a card machine prompts for a tip in places where tipping was not previously expected, and 89% say tipping is out of hand and is applied to goods and services they do not think warrant tipping.
This backlash isn't just frustration. It's now changing behaviour and pushing customers away.
- H&R Block says 41% of Canadians avoid businesses they know will push tip prompts at checkout, including coffee shops, convenience stores, fast food, and self serve counters.
- In 2025, 57% said they felt awkward skipping the tip prompt and tended to tip anyway. In 2026, 65% say they feel less awkward choosing no tip, and 67% say they increasingly choose the no tip option.
- The survey reports 89% think tip percentages have become too high, and 79% say they enter a custom tip amount rather than using the suggested percentages where possible.
See: Monzo Spend Recap Backlash Exposes Trust And Tone Risk
The survey also connects tipping culture to tax and compliance.
H&R Block’s 2025 survey found 84% of Canadians know tips are taxable income, but 47% assume people are not declaring all tips. The evolution from paying/receiving cash tips to digital tips changes how income shows up for tax purposes, especially when tips flow through employers and platform operators.
Digital tipping changes the paper trail. When tips move through a card terminal or POS system and the business pays them out through payroll, the tip can show up like other income on a paycheque, with deductions such as tax, EI, or CPP applied before the employee receives it and then reflected on tax slips. That is different from cash tips left on a table, where the worker has to track and report them. Gig work is different again. Even when an app collects tips and passes them on, gig workers are often treated as self employed, so they still have to report the full amount themselves at tax time.
Implications For Fintechs and Payment Operators
This is a payments design problem that's now hitting brand trust. The tip prompt is part of the checkout experience, and the checkout experience is increasingly built and configured through payment processors, point of sale providers, and embedded finance stacks. When consumers feel pressured, they blame the merchant, but they also blame the payment flow. The numbers show that tip prompts can create real revenue risk for merchants if 41% of customers are willing to avoid tip pushing businesses.
For fintechs selling point of sale and payment tools, this is an opening to compete on trust and customer experience. Firms that give merchants better controls, clearer disclosure, and safer defaults can reduce backlash while still supporting gratuities where they make sense.
Read: What Tax Smart Investing Can Teach Canadians About Building Real Wealth
Fintechs that serve gig platforms (or merchants) can help by making tip reporting clearer in worker dashboards and by separating tip flows in a way that matches how income is treated.
Merchants will tune tip prompts more carefully because customer resentment is measurable. Payment platforms will face more pressure to treat tip design as a trust issue, not a digital cash lever. Regulators and tax authorities will face more questions about consistency and clarity as tipping moves further into digital rails.
Talking Point
If 67% of Canadians want tipping abolished and 41% avoid tip pushing businesses, do payment platforms start competing on tip prompt design the same way they compete on fees and checkout conversion?
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 Crypto Interpretation Resets Market Structure
Mar 18, 2026 | NCFA Insight | Digital Assets And Tokenization
Token Classification and Lifecycle Rules Define Securities Boundaries
On Mar 17, 2026, the U.S. Securities and Exchange Commission issued a formal interpretation on how federal securities laws apply to certain crypto assets and certain crypto asset transactions with aligned support from the CFTC read the SEC’s March 17 press release on the joint crypto interpretation (and Fact Sheet).
This is a significant U.S. digital asset policy interpretation because it gives the market something it's lacked for a long time: a public classification system, a public lifecycle test, and public treatment of core activities such as staking, wrapping, and airdrops.
The old question of 'is it a security?' no longer sits only at the token level.
The SEC now says the answer can depend on the category of asset, the way it is sold, the promises around it, and whether those promises still matter later in the market.
A Working Token Map
The release classifies crypto assets into five categories based on characteristics, uses, and functions: (1) digital commodities, (2) digital collectibles, (3) digital tools, (4) stablecoins, and (5) digital securities. It's a framework that crypto firms can actually use in product design, listing review, and compliance planning.
See: US Trust Charter Debate Heats Up Around Crypto Banks
Some of the examples are worth noting. In the published interpretation, the SEC lists Aptos, Avalanche, Bitcoin, Bitcoin Cash, Cardano, Chainlink, Dogecoin, Ether, Hedera, Litecoin, Polkadot, Shiba Inu, Solana, Stellar, Tezos, and XRP as examples of digital commodities. It says these assets gain value from how the network operates and from market supply and demand, not from a team whose efforts drive profit expectations.
On collectibles, it points to CryptoPunks, Chromie Squiggles, Fan Tokens, WIF, and VCOIN.
On tools, it cites Ethereum Name Service domain names and CoinDesk’s Microcosms NFT Consensus Ticket.
The point is not that every asset that looks similar gets a free pass, and the SEC is now saying publicly that many crypto assets are not securities in themselves.
And It's Lifecycle
The SEC separates the token from how it is sold. It applies the Howey test to the transaction, not just the asset. A token that is not a security can still be sold as part of an investment contract if a team’s promises create an expectation of profit.
The interpretation then separates the asset from the contract and explains how that link can end. A non security token is no longer subject to an investment contract once buyers no longer rely on the issuer’s promises.
This can happen in two ways. The issuer fulfills what it said it would build, such as delivering functionality or completing roadmap milestones. Or the issuer abandons those efforts, making it unreasonable for the market to keep relying on them. In both cases, the investment contract can fall away, even though the issuer may still face anti fraud liability for earlier statements.
See: Stablecoin Interest and Rewards A Regulatory Fault Line
This directly addresses the secondary market problem. A token’s status in later trading does not depend only on how it was launched. It also depends on whether buyers still rely on the issuer’s promises at that point in time.
Marketing And Legal Risk
The SEC ties securities treatment directly to what issuers say. Statements in agreements, websites, whitepapers, and social media can create a reasonable expectation of profit.
That risk increases when issuers make explicit promises tied to roadmaps, milestones, funding plans, and how their work will drive value.
Token design and marketing cannot be separated. If the sales narrative links price appreciation to team execution, the offering can be treated as an investment contract.
For founders and counsel, that is the message. Product design, legal design, and communications design now need to be built together from day one.
Staking Gets A Defined Framework
The SEC says covered protocol staking activities don't involve securities transactions when structured as described. It covers self staking, custodial and non custodial staking, delegated and nominated staking, and liquid staking.
See: SEC Clears Crypto Staking. What It Means for Canada
The interpretation is that rewards and penalties come from protocol rules, not from a team managing profits. That includes liquid staking models where users receive tokens tied to their staked position. If returns come from how the network operates, not from a promoter’s decisions, the activity is less likely to be treated as a securities transaction. That gives exchanges, custodians, and staking providers clearer ground for product design.
Wrapping And Airdrops
The SEC also says wrapping a non security crypto asset doesn't create a security when the wrapped token is redeemable one for one, the underlying asset stays locked for the holder, and value comes from that underlying asset. This supports cross chain use, custody design, and token mobility.
It also confirms that certain airdrops do not involve an investment of money under the Howey Test when recipients do not give anything in return. Common uses include rewarding early users, supporting governance, and building network participation. This does not make all airdrops safe, but it gives builders a clearer framework to separate distribution from securities risk.
Stablecoins And Tokenization
The SEC aligns its position on stablecoins with the GENIUS Act. It says qualifying payment stablecoins issued by permitted issuers will not be securities once the law is in force. It also states that some covered stablecoins already fall outside securities treatment under its interpretation. This gives issuers and institutions clearer direction on how stablecoins are treated at the federal level.
See: Tokenized Infrastructure Is Changing How Markets Operate
Tokenized securities get a clear boundary. A security remains a security whether it is issued offchain or onchain. The SEC describes both issuer led tokenization and third party tokenization of existing assets. In both cases, moving an asset onchain may improve issuance and settlement, but it does not change its legal status.
What Changes For The Market Now
This interpretation affects different parts of the market in different ways.
- Token issuers now have a stronger reason to define exactly what they are promising, when they expect to deliver it, and how they will communicate completion
- Exchanges and brokers gain a clearer basis to review whether an asset remains tied to issuer efforts in secondary trading
- Custodians and staking providers get more detailed guidance on where protocol participation ends and securities treatment begins
- Investors get a more useful way to separate network assets, tokenized securities, and issuer dependent schemes
- The release also raises the bar for policymakers
See: Treasury Reopens Crypto Mixer Privacy Debate
This interpretation shows what a more usable framework looks like in practice. While it doesn't solve every unanswered question, it's helpful and moves the debate from slogans to structure. Markets develop faster when participants can classify assets, model lifecycle risk, and design products in lie with public rules instead of trying to read the regulator’s mind from old enforcement cases.
Takeaway
The SEC doesn't replace the Howey Test but it makes Howey more operational for crypto markets. That's the real change. The release gives the industry a public map for classification, a public test for when securities treatment begins and ends, and public treatment of activities that sit at the center of token network design. If you're looking for more of a legal analysis here.
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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BMO Expands Physical Banking In US Growth Markets
Mar 18, 2026 | NCFA Fintech Market Activity | Banking Distribution And Market Expansion
BMO Expands Advice Led Branch Strategy Across California And Arizona
On Mar 17 2026, BMO announced a multi year expansion of new financial centers in the United States, adding more than 130 locations in California and about 15 in Arizona over the next five years. BMO already operates more than 220 financial centers in California, so the new build represents growth of more than 50% in that state.
Seven California financial centers are scheduled to open in 2026, with three in Greater Los Angeles, two in the Bay Area, and two in San Diego. In Arizona, the bank plans to expand in Phoenix and Tucson.
BMO is betting on distribution by putting more capital behind in person, advice led banking in high growth U.S. markets at a time when many firms still talk as if digital channels alone will carry the next phase of growth.
How Important is Face to Face?
BMO describes each new site as a modern financial advice hub covering personal and business banking, commercial banking, and wealth management. It is expanding to deepen relationships, cross sell more products, and win over higher value clients who still want face to face advice for borrowing, business growth, and wealth decisions.
See: Canada’s RBC and BMO Possibly Looking to Sell Moneris
This also shows that branch strategy is splitting by market. Some regions still face access pressure from branch closures, which NCFA has covered in rural cash access, while banks such as BMO are still adding physical advice hubs in faster growing urban markets.
That's the strategic point. Digital tools lower servicing cost, but physical distribution remains important when banks compete for trust, complex financial needs, and local business relationships.
BMO is also signalling confidence in the long term value of U.S. regional expansion. The bank says the new network across California and Arizona is expected to support hundreds of jobs over five years, while also investing in renovations and relocations across its existing footprint.
Talking Point
If TradFi banks invest in physical centers for advice, trust, and higher value relationships in growing urban markets is it because digital banking plus AI services are at risk of missing the mark?
In growth markets, a physical footprint can still be a customer acquisition and advisory asset if the banking experience moves from transaction counter to relationship hub.
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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US Trust Charter Debate Heats Up Around Crypto Banks
Mar 17, 2026 | NCFA Insight | Banking Regulation And Digital Assets
Crypto Firms Push for Federal Banking Access
The debate is heating up over crypto and fintech access to US banking infrastructure since actions already taken by the Office of the Comptroller of the Currency (OCC) on Dec 12 2025 to conditionally approve five national trust bank charters for the following crypto firms: First National Digital Currency Bank, Ripple National Trust Bank, BitGo Bank & Trust, Fidelity Digital Assets, and Paxos Trust Company. These charters allow firms to operate under federal oversight for custody and payments without taking deposits.
On Mar 17 2026, the Wall Street Journal reported that regulators are considering expanded crypto bank access, points to further expansion along this path rather than a new standalone rule. The direction is reinforced by guidance such as the OCC bulletin on digital asset and stablecoin activities, which shows regulators are already defining how non traditional firms operate within the federal banking perimeter.
It's significant because national trust charters give firms a way to scale across the US without relying on fragmented state licensing. They provide a regulated path into custody, payments, and fiduciary services under a single federal supervisor, without becoming full service deposit taking banks.
Banks Pushback Showing What's At Stake
Traditional banking groups are pushing back. In a statement opposing OCC conditional approval of five national trust bank charters, the Bank Policy Institute (BPI) said the decision left “substantial unanswered questions” about how these firms would operate and be supervised. BPI has also filed specific objections to trust charter applications, including its opposition to Connectia Trust’s national trust bank application and its opposition to BitGo Trust’s conversion to a national trust bank.
The concern is regulatory parity. Banks argue that if crypto and fintech firms can access core custody and payments infrastructure through trust charters without taking deposits, they may gain entry to important parts of the banking system without facing the same balance sheet requirements as full service banks. That tension is at the center of the policy debate. Who gets access to regulated infrastructure, and under what conditions.
What Fintech Operators Should Take From This
The US isn't waiting for a new trust charter rule. It's progressing through approvals, guidance, and case by case decisions that give some firms a clearer path into regulated custody, payments, and fiduciary services under federal oversight.
See: Bank Of Canada Signals Open Banking Timing Risk
A national trust charter can reduce dependence on fragmented state licensing, improve credibility with institutional partners, and make it easier to build around regulated payment and custody infrastructure. But know that the regulatory bar isn't low. Firms pursuing this path still need strong governance, compliance, risk controls, and operating discipline. Access is possible, but it is conditional.
Canada Has A Different Federal Entry Path
Canada is taking a different approach. In the US, the trust charter debate is about whether crypto and fintech firms can enter deeper into the banking system through a federal charter pathway. In Canada, the main stablecoin related framework sits inside securities and crypto trading platform oversight, not bank chartering. Canadian regulators use the term value referenced crypto assets (see CSA Staff Notice 21 333) and sets conditions around reserves, disclosure, redemption rights, assurance, and platform controls before these assets can be offered to clients. That means the US debate is mainly about institutional status and access to banking infrastructure, while the Canadian debate is mainly about asset eligibility and client protection on regulated platforms.
In Feb 2026, OSFI announced a targeted fast track approval framework for new entrants that will launch in June 2026 and give eligible applicants a quicker, clearer, and more predictable path into the federal system. The initial scope includes provincial credit unions seeking federal status and firms with technologically innovative or emerging banking models.
Talking Point
The real question is not whether crypto firms become banks. It is whether regulators create a consistent operating standard for firms that want access to core financial infrastructure without becoming full service deposit taking institutions.
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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