Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Marketing, Strategy, Growth, Design
Stablecoin Companies Are Buying Their Way Into Local Banking, Here Is What It Means for High Risk Merchants
Sep 16, 2026
Stablecoins are moving deeper into commercial payment infrastructure. Circle’s agreement to acquire Tazapay provides a useful measure of that progress.
Announced on September 8, the transaction would bring more than 60 banking and fintech partners and local payout coverage across over 100 markets into Circle’s network. Tazapay processes more than US$25 billion in annualized payment volume, with stablecoins already involved in approximately 60% of that activity.
The proposed acquisition remains subject to regulatory approval and is expected to close in 2027. Its structure still says something important about the direction of the market. Stablecoin companies are investing in local banking connections, foreign exchange, compliance and payout capacity. Those are the operational components required to turn digital dollars into a usable settlement network.
The development has particular relevance for higher-risk merchants. These businesses frequently encounter restrictions that have little to do with their immediate ability to make a sale. Cross-border settlement, limited acquiring coverage, currency conversion and abrupt changes in bank risk appetite can all affect whether revenue reaches the merchant reliably.
Stablecoin settlement offers another route for moving funds through that environment. Its value depends on understanding which part of the payment process it actually changes.
Acceptance and settlement solve different problems
A payment begins with the customer and ends when the merchant can use the proceeds. Several companies may participate between those two points.
The customer may pay through a card, bank transfer or local payment method. An acquiring institution authorizes and processes the transaction. A processor or gateway sends the relevant information between the merchant and the financial institutions. Settlement then delivers the merchant’s funds, subject to fees, reserves, refunds and other contractual terms.
A stablecoin can be introduced near the end of this sequence. The customer may continue paying in conventional currency while the merchant receives USDC or another digital asset. In other arrangements, stablecoins are used between financial institutions and converted into local currency before the final payout.
This distinction is essential for high-risk merchants. Stablecoin settlement can improve the movement of funds after a transaction has been approved. Card acceptance still requires an acquiring relationship capable of supporting the merchant’s industry, geography and transaction profile.
Chargebacks also remain part of card-funded transactions. Converting settlement proceeds into a stablecoin does not remove the consumer’s dispute rights or the merchant’s obligations to the acquiring bank. Reserves and delayed funding may still apply when the underlying transaction carries elevated exposure.
Merchants should therefore identify the exact role played by each provider. The most important questions concern who acquires the card transaction, who holds the merchant agreement, who manages disputes and which institution controls settlement.
Why high-risk merchants are interested
Settlement friction is expensive. A merchant operating across several countries may receive funds in multiple currencies, wait through local banking hours and pay for several conversions before the money reaches its operating account.
Stablecoin rails can shorten parts of that process. Digital assets can move outside conventional banking hours, and a merchant may hold settlement proceeds in a dollar-denominated instrument before deciding when and where to convert them.
That flexibility can be useful for businesses paying international suppliers, contractors or service providers. It may also simplify treasury operations when sales and expenses occur in different jurisdictions.
See: Canada Stablecoin Regulations Guide
Tazapay illustrates the infrastructure required to make the model practical. The company combines collections, virtual accounts, foreign exchange, stablecoin conversion and local payouts. Its network connects stablecoin liquidity with domestic payment rails, allowing recipients to receive the currency and payment method used in their local market.
The Canadian connection is direct. Tazapay states that its stablecoin services are provided through Tazapay Canada Corp., a money services business registered with FINTRAC. The entity facilitates stablecoin payments and conversions within the relevant regulatory framework.
This type of structure gives merchants access to digital settlement while preserving connections to regulated fiat entry and exit points. The quality of those connections determines whether stablecoin settlement can support routine commerce at scale.
The commercial terms require close review
Speed attracts attention, but the economics deserve equal scrutiny.
A merchant may pay a processing fee for the customer transaction, a conversion spread when funds move between fiat and stablecoins, network fees for on-chain transfers and another conversion charge when the stablecoin is exchanged into local currency. Some providers combine these costs into one rate; others price each stage separately.
The settlement promise also needs definition. “Instant settlement” may describe the movement of a stablecoin into a wallet after the provider releases the funds. It may exclude the underwriting period, reserve requirements or time needed to convert the asset into a bank deposit.
Custody creates another decision. Merchants receiving stablecoins into a self-controlled wallet assume responsibility for wallet security, access credentials and transaction approvals. Custodial providers manage some of those functions but introduce counterparty and access risk.
Accounting and reconciliation should be designed before launch. Finance teams need to connect the original customer payment with processing fees, conversion rates, blockchain transactions, refunds and the final value received. A faster rail provides limited operational benefit when the company cannot reconcile it accurately.
Merchants should also consider the stablecoin itself. Reserve quality, redemption arrangements, issuer regulation and available liquidity affect the reliability of the settlement asset. A token designed to maintain a one-dollar value still carries issuer, operational and market risks that should appear in treasury policy.
Underwriting remains central
Higher-risk merchants sometimes approach alternative settlement after losing a conventional processor. That sequence can encourage the assumption that a different rail will resolve the underlying account problem.
Acquirers and payment providers continue to examine the product, customer base, marketing, fulfilment, ownership and regulatory position of the business. Stablecoin providers also conduct customer due diligence, transaction monitoring and sanctions screening.
Merchant-account specialists such as CERF Payment Solutions work across this boundary, helping regulated and specialty businesses identify acquiring and settlement arrangements suited to their operating profile. Approval and commercial terms remain subject to the financial institutions providing the service.
For merchants, transparency is therefore commercially useful. The application should accurately describe the product, expected volume, transaction geography, refund exposure and intended settlement flow. Wallet ownership and conversion arrangements should also be documented.
A business using card acceptance with stablecoin settlement needs a coordinated procedure for refunds and chargebacks. Treasury teams must retain enough accessible liquidity to meet those obligations even when settlement proceeds have moved to another wallet, currency or jurisdiction.
Stablecoin settlement can strengthen a payment structure when these responsibilities are clear. It can reduce payout delays, extend operating hours and improve control over cross-border liquidity. The benefits arise from better infrastructure and sound implementation.
Circle’s planned Tazapay acquisition shows how quickly that infrastructure is developing. Stablecoin networks are acquiring the banking relationships, licences, integrations and local payout capacity required for commercial use.
High-risk merchants will remain subject to careful underwriting. They will also have a wider range of settlement options. The companies that understand both sides of the transaction will be best placed to use those options effectively.
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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Zown Offers Up to 8% Rent Rewards in Canada
September 15, 2026 | NCFA Market Activity | Lending Consumer Credit And BNPL, Embedded Finance, Artificial Intelligence And Data
Zown Connects Rent Rewards, AI Search and Home Finance
On September 15, 2026, Toronto-based Canadian proptech Zown updated its homebuying app with Rent Rewards alongside AI property search, affordability estimates, mortgage pre-approval and transaction services. Zown advertises up to 8% back on rent, giving it a reason to start working with consumers years before many will be ready to buy a home.
The 8% combines two potential rewards. Zown Money says Zown currently provides up to 4% cashback directly on rent, while an eligible credit card can add up to another 4% depending on the card's terms. At C$2,500 in monthly rent, Zown's 4% portion would equal C$100 a month or C$1,200 a year. If a renter also earned the full additional 4% through their card, the total could reach C$200 a month or C$2,400 a year before any card or payment-related costs.
The Canadian iPhone app, developed by Zown Realty Inc., also lets users upload a lease and proof of rent, search properties through an AI assistant called Zoro, view estimated affordability, request showings with licensed agents, seek mortgage pre-approval, submit offers and coordinate parts of closing. Zown Realty is an Ontario-registered real-estate brokerage. Mortgage rates, terms and qualification are provided through Vine Mortgage Group, and Zown says it isn't a direct mortgage lender.
Rent Becomes Part of the Homebuying Economics
Zown's model starts with a difficult Canadian problem. CMHC's 2026 Mortgage Consumer Survey found that recent buyers needed an average 4.4 years to save a down payment, while first-time buyers needed 4.7 years. Savings supplied the largest share of the down payment for 51% of first-time buyers. Another 23% of homebuyers received a financial gift, with a median gift of C$30,000. Rent Rewards give Zown a recurring reason to stay connected during those years.
Zown already has a more established incentive for buyers. Its Down Payment Boost returns up to 1.25% of a home's purchase price, capped at C$25,000, using part of the brokerage economics generated when a customer buys through Zown. On a C$1 million home, 1.25% equals C$12,500. Despite the product name, Zown's current guidance says the money arrives at closing and isn't counted as part of the mortgage down payment itself. Buyers can use it for closing and post-closing expenses.
Zown isn't alone in treating rent as financially useful activity. KOHO introduced rent cashback and credit reporting in Canada, while FrontLobby reports verified rent history to credit bureaus. Zown takes a different approach by connecting rent rewards with a later property purchase and the services surrounding it.
Three Trends Converging Around the Renter
1. Rent is becoming a financial product. Canadian fintechs are attaching payments, rewards and credit reporting to one of the largest monthly household expenses. Toronto-based Chexy shows how quickly the category can scale. In March, the company raised C$14 million after starting with rent payments and said it had reached more than C$1 billion in annual payment volume and C$20 million in rewards value. Zown is pursuing a different end market, but rent serves the same commercial purpose of establishing a recurring financial interaction before other higher-value services are needed.
2. Housing costs are attracting more fintech models. Rent reporting, payment routing, rewards and short-term financing are competing for the same household expense. NCFA has tracked how fintech is entering rent and housing payments through companies including KOHO, Borrowell, Zenbase and Chexy. Zown adds another model by using rent rewards to encourage future homeownership and then connecting the renter to brokerage and mortgage services.
3. AI is getting closer to the financial decision. CMHC found that 16% of mortgage consumers who searched online used AI for mortgage information in 2026. HouseSigma says its Canadian platform has more than two million registered users and over five million monthly web visits, with AI used for valuation and market analysis. Zown's Zoro is competing in the same environment, focused on helping someone make a better property or financing decision. NCFA has identified the same commercial issue in decision intelligence across financial services.
It's a competitive field already. Wahi competes on digital brokerage and buyer cashback, Perch on digital mortgage readiness, FrontLobby on rent reporting, and HouseSigma on property search, valuation and market data. Zown's difference is the attempt to connect those stages much earlier, while the customer is still renting.
Can Zown Keep Renters Until They Buy?
The economics improve if Rent Rewards keep customers engaged rather than simply subsidizing renters who eventually buy elsewhere. A traditional brokerage usually starts competing once someone begins seriously looking for a home. Zown can enter much earlier, stay connected through monthly rent, introduce affordability and mortgage tools, and eventually earn brokerage revenue if that renter buys through the platform.
See: KOHO Gives Renters a Boost With Cash Back and Credit Help
That could lower the cost of finding future buyers and generate more revenue from each customer relationship. It can also become expensive if Zown funds rewards for several years without converting enough renters into completed transactions. The operating number worth watching should therefore be how many Rent Rewards users eventually become profitable Zown homebuyers?
Talking Point
Canadian mortgage companies, brokerages and property apps usually compete once someone is already thinking seriously about buying. If Zown can give renters enough financial value to earn their attention four or five years earlier, how much of the future homebuyer relationship can it own before the mortgage application even begins?
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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Wise Launches Chequing Account in Canada With Interac
September 15, 2026 | NCFA Market Activity | Digital Banking And BaaS, Cross Border Payments And FX, Competition And Market Structure
Wise Adds Everyday Canadian Payments Without Becoming a Bank
On September 14, 2026, UK-based global payments company Wise launched a Chequing Account in Canada with no monthly fee, Interac e-Transfer support, Canadian account details, pre-authorized debits, debit-card access and multi-currency features. The launch takes Wise further into everyday Canadian financial activity while keeping the cross-border tools that built its original customer base.
The account is available to personal and business customers in Canada. Customers can hold more than 40 currencies, receive money using account details available across 22 currencies and send money to more than 70 countries. Wise converts currencies at the mid-market rate and charges a separate conversion fee that currently starts from 0.19%, depending on the currency and transaction.
Interac Makes Wise More Useful Day to Day
Canadian customers can send up to C$25,000 to a supported Interac email address and receive up to C$25,000 per day through Interac Autodeposit. Wise doesn't charge its own fee to receive Autodeposit payments, and the September launch removed the Wise fee for sending CAD to an Interac alias and adding CAD through Interac. Incoming transfers that require a security question and manual acceptance aren't currently supported, and an email registered for Wise Autodeposit can't remain registered for Autodeposit at another financial institution.
Wise also provides Canadian institution, transit and account numbers for electronic deposits and withdrawals. Customers can receive pay, set up pre-authorized debits for recurring bills, spend through a physical or digital debit card and withdraw cash at ATMs. Wise currently charges no withdrawal fee on the first C$100 each month, then C$2.69 plus 2.69% on the amount above C$100, while an ATM operator can charge its own fee.
Group Spend lets customers create a shared balance for expenses such as household bills or trips. Wise's international features are still a key difference. Customers can hold CAD and dozens of other currencies in one account, convert between them and receive money using account details available in 22 currencies.
Wise Offers Chequing Functions Under a Non-Bank Model
Wise Payments Canada Inc. is not a Canadian bank. It is registered with the Financial Transactions and Reports Analysis Centre of Canada as a Money Services Business under registration M15193392 and with the Bank of Canada as a payment service provider under the Retail Payment Activities Act. It also holds a Quebec money services business licence.
Wise keeps customer funds separate from its operating money under Canada's payment-safeguarding rules. For its Chequing Account, Wise says eligible deposits are held in trust at a Canada Deposit Insurance Corporation member institution with customers identified as beneficiaries. Eligible deposits can receive CDIC protection of up to the equivalent of C$100,000 per beneficiary if the member institution fails and the trust-disclosure requirements are satisfied; Wise itself is not a CDIC member.
Foreign-currency balances aren't automatically excluded because CDIC can cover eligible deposits in Canadian or foreign currency. Coverage still depends on the deposit meeting CDIC rules, and balances held for the same customer at the same member institution can be combined when insurance limits are calculated.
Wise also became a Payments Canada member in January 2026 after federal rule changes opened membership to regulated payment service providers. That gives Wise a formal role inside Canada's payments system and makes eligible PSP members able to seek participation in payment systems under the applicable rules. Membership doesn't automatically give Wise direct access to every Canadian payment rail.
Wise Pushes Deeper Into Everyday Canadian Banking
Canadian consumers can already choose among traditional banks, digital banks and fintech accounts that cover much of the same daily activity. Wise competes with domestic payment functions and a deep multi-currency product, while using a regulated non-bank structure for the account itself.
Competitive Snapshot
Big Six banks: Traditional banks still combine chequing with lending, credit, branches, drafts and direct deposit-taking. RBC Day to Day Banking, for example, has a standard C$4 monthly fee and includes 12 debit transactions plus unlimited Interac e-Transfers. Wise removes the monthly fee and adds much deeper multi-currency functionality, but it doesn't replace the full range of services available through a bank.
Wealthsimple: Wealthsimple has expanded deeper into everyday banking with chequing, payments, direct deposit, cards and other daily money tools. Customer cash is held in trust with CDIC member institutions rather than by Wealthsimple as a bank. Wise has the stronger cross-border proposition through currency holding, foreign account details and international transfers.
KOHO: KOHO combines prepaid-card spending, Interac transfers, Autodeposit and bill payments, with customer funds held through a trust structure designed to qualify for CDIC protection. Its product is centred more heavily on Canadian spending, credit building, rewards and budgeting, while Wise puts international money management at the centre of the account.
EQ Bank: EQ Bank's Personal Account also has no monthly fee and includes unlimited Interac e-Transfers, bill payments, direct deposit and card access. The legal model is different because EQ Bank is a trade name of Equitable Bank, a federally regulated bank and CDIC member that accepts deposits directly. EQ already uses Wise for international transfers, making it both a competitor in everyday banking and a distribution partner for Wise's cross-border capability.
Neo Financial: Neo gained direct Interac e-Transfer access in April 2026 and offers digital chequing functions including Interac transfers, bill payments, pre-authorized debits and card spending. Its focus is more Canadian spending, credit and rewards, while Wise brings a much deeper international money layer.
Wise now covers many of the tasks that keep a chequing account central to a customer's financial life, while adding something most Canadian chequing products don't offer at the same depth: one account built around both domestic use and frequent cross-border money movement.
See: Are Payment Networks Opening Access While Tightening Control?
Canada's regulatory changes give non-bank providers more room to compete for that relationship. RPAA supervision applies operational-risk and safeguarding requirements to payment service providers, while Payments Canada membership brings qualifying fintechs closer to national payment systems. Consumer-driven banking could extend that competition further if customers gain easier ways to connect financial data and services across institutions.
Wise is also giving the launch a physical presence through a temporary pop-up at Toronto Eaton Centre on Level 1 from September 14 through October 11. Customers can register, get product help and participate in launch promotions there, but the location is a Wise promotional and service activation rather than a Canadian bank branch.
Talking Point
Wise can now handle many of the transactions Canadians associate with a primary chequing account while remaining a regulated non-bank provider. How much of the everyday banking relationship can fintechs win before customers care less about whether their main account comes from a bank?
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 Investment Summit Adds Nearly $500B in Commitments
September 15, 2026 | NCFA Insight | Capital Markets And Market Infrastructure, Competition And Market Structure, Public Sector Policy And Industrial Strategy
Nearly $500B In Commitments And A Proposed 6.4% Investment Tax Rate
Today, on September 15, 2026, Canada's first Canada Investment Summit 2026 commitments reached nearly $500 billion across Canadian pension funds, insurers, banks, investment funds and a major AI infrastructure project. The September 14–15 summit in Toronto also brought together investors from nearly 30 countries managing more than $100 trillion in assets.
The $500 billion isn't one pool of foreign equity. It combines institutional investment, bank financing and capital mobilization, investment funds and corporate infrastructure spending. A large share comes from Canadian institutions putting more capital to work at home while Ottawa tries to attract additional global investment.
Canadian Institutions Supply Much Of The Capital
- Canadian pension funds, insurers and other institutional investors committed nearly $100 billion
- CPP Investments and Brookfield Asset Management launched the $50 billion Maple Fund for Canadian critical infrastructure and strategic industries
- PSP Investments plans another $25 billion of Canadian investment
- Ontario Teachers' Pension Plan committed an additional $10 billion by the end of 2027
- Sun Life Financial committed $5 billion over five years for infrastructure including digital technology, energy and transportation
- Banks account for the largest share. TD committed $150 billion in financing over five years across energy, critical minerals and resources, defence and aerospace, digital and AI, and infrastructure
- Scotiabank committed more than $100 billion
- BMO up to $70 billion
- CIBC $2 billion for defence-related and dual-use small and medium-sized businesses
- RBC nearly $1.5 billion for high-growth Canadian technology companies
These commitments work in different ways. Bank financing, pension investment, venture capital and corporate spending support different types of projects and companies. Together, they give Canadian businesses and infrastructure projects more ways to access capital.
See: Canada Has C$500B in Private Credit Exposure, But Little at Home
Canadian institutions already invest a lot of money outside Canada. The Bank of Canada recently estimated that pension funds, insurers, investment funds and banks have about C$500 billion invested in private credit, much of it abroad. The summit is trying to put more of that Canadian capital to work at home.
Investment funds added more than $14 billion. Power Sustainable committed to invest and mobilize more than $10 billion for infrastructure including power, grids, fibre, data and food supply chains. Radical Ventures plans to invest and mobilize $4 billion through its new Radical Breakouts Fund for Canadian AI scaleups.
Bell Canada and Saskatchewan also announced an AI infrastructure project of up to $52.5 billion. The proposed 1.2-gigawatt AI hub is expected to create more than 4,500 jobs across construction, operations, management and related services.
Ottawa Is Cutting The Tax Cost Of New Investment
Another September 15 announcement lowers the tax cost of making new business investments. Ottawa's proposed Productivity Mega Deduction would let businesses write off roughly two-thirds of eligible capital investments right away, up from about 15% under the earlier Productivity Super-Deduction.
Most qualifying assets bought on or after September 15, 2026 would be covered. That includes software, computers, fibre-optic cable, mining property, certain pipelines, aircraft, vehicles, patents, rail track, bridges and roads. Most buildings, goodwill and some vehicles would remain outside the main rules or receive different treatment.
Finance Canada estimates the change would cut Canada's effective tax rate on new business investment to 6.4% (from 13.0%). For comparison, it estimates the U.S. rate at 16.9% and the OECD average excluding Canada at 19.0%.
This isn't just an incentive for foreign investors. Canadian and international companies could both benefit when they make qualifying investments in Canada.
The federal government estimates the measure would reduce tax revenue by $36 billion over five years. Finance Canada also estimates that about $8.5 billion a year in investment support could eventually generate up to roughly $22 billion in additional annual economic activity. The final impact will be based on how much new investment follows and whether it lifts output and productivity.
The Canada Revenue Agency has also begun prioritizing advance tax rulings for proposed Canadian investments of $1 billion or more. Investors can seek binding tax treatment before committing capital, reducing one source of uncertainty on large projects.
Canada Needs The Capital To Show Up In Productivity
Statistics Canada productivity research found investment per worker in 2022 was nearly 20% below its 2014 level. Real non-residential business investment in early 2024 was still 22% below its peak a decade earlier, and weak capital investment has been a major contributor to slower labour-productivity growth.
See: Fintech's Role in Canada's Productivity Revival
The latest business surveys are more encouraging. Bank of Canada survey data show 43% of firms in the second quarter of 2026 identified improving productivity as an investment objective, up from 31% a year earlier. Equipment upgrades, technology adoption and AI investment give companies ways to convert financing into higher output rather than simply expanding balance sheets.
Foreign capital is also rising. Statistics Canada recorded $96.8 billion of foreign direct investment into Canada in 2025, the highest annual level since 2007. In the second quarter of 2026, inward direct investment reached $25.9 billion, up from $18.8 billion in the first quarter. Manufacturing attracted $7.0 billion and finance and insurance $6.6 billion.
Canada now has more domestic capital earmarked for Canadian assets at the same time that foreign direct investment is rising. Domestic institutions can finance assets and companies through longer investment cycles, while foreign capital adds outside balance sheets, customers, expertise and international connections.
Trade pressure adds another reason to build more productive capacity at home. Canadian companies looking beyond the United States still need capital for technology, production, regulatory work, new customers and foreign operations. Stronger financing at home gives more firms the option to build those capabilities from Canada rather than moving capital-intensive parts of their growth elsewhere. See: Budget 2025 Accelerates Fintech, AI, and Capital Growth
Video: CBC News coverage of Canada’s first Investment Summit, where nearly $500 billion in new investment commitments were announced.
The Scorecard Is Projects, Productivity And Company Scale
For Canadian founders, the most accessible commitments are much smaller than the $500 billion headline. Radical Ventures' $4 billion AI fund, RBC's nearly $1.5 billion technology commitment and CIBC's $2 billion defence and dual-use program can reach companies below major infrastructure scale. Pension and bank commitments can finance the data centres, energy systems, digital infrastructure and customers around them.
See: Can Canadian Fintechs Diversify Beyond The U.S. Faster?
Canada has plenty of capital on paper. It now needs to move the needle in funded projects, higher investment per worker, productive technology adoption, export capacity and Canadian companies reaching larger scale.
$500 billion gives Canada a large starting balance. How much is actually deployed, where it goes and what it produces will determine whether the summit becomes a capital-formation milestone or a very large collection of commitments.
Talking Point
Can Canada turn nearly $500 billion of new capital commitments and a proposed 6.4% investment tax rate into measurably higher productive investment, larger Canadian companies and stronger domestic and foreign capital flows?
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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Navigating Market Volatility: A Realistic Strategy for Real Estate Funds and Mobility
Sep 15, 2026
Image credit: Pexels
Market volatility remains a persistent factor in wealth management, driving investors to seek strategies that balance capital stability with strategic diversification. While physical property has traditionally served as a tangible asset class, direct ownership often carries operational friction and localized concentration risk. Real estate funds present a structured alternative, pooling capital to access larger-scale assets under professional administration. However, evaluating these vehicles requires a realistic understanding of their risk profiles, liquidity terms, fee structures, and underlying statutory frameworks.
Structural Trade-offs: Scale, Risk, and Liquidity
Managed real estate portfolios offer distinct operational benefits while introducing clear structural constraints:
- Institutional Execution: Funds leverage pooled capital to negotiate institutional pricing, access commercial or multi-unit residential developments, and spread risk across multiple properties within the fund's mandate.
- Inflation Pass-Through and Fee Drag: Real estate often mitigates inflation through index-linked commercial leases or periodic residential rent adjustments. However, net investor returns are directly impacted by fund fee structures—typically including a 1–2% annual management fee and potential performance hurdles—which must be weighed against the ongoing maintenance and transaction costs of direct ownership.
- Operational Relief: Professional managers oversee tenant administration, maintenance, and legal compliance, removing the daily burdens associated with direct landlord responsibilities.
- Realistic Liquidity Profile: Unlike publicly traded equities or REITs, private real estate funds—particularly those tied to residency frameworks—are inherently illiquid. Capital is typically subject to multi-year lock-up periods, and redemption is governed by strict fund terms rather than immediate market access.
- Risk Profile & Macroeconomic Sensitivity: While physical real estate provides an asset-backed buffer, it does not establish an absolute price floor. Property valuations remain subject to broader macroeconomic conditions, interest rate shifts, and localized cap rate expansions.
Integrating Capital with Mobility: The Hungary Golden Visa Framework
While European Union institutions have increasingly pressured member states to restrict residency-by-investment programs, specific national jurisdictions maintain defined statutory pathways. Hungary’s Guest Investor Program offers a structured framework for international investors seeking European mobility alongside capital allocation.
Unlike former European programs that encouraged direct residential purchases—often driving up local housing prices—the Hungarian framework emphasizes institutional, regulated fund vehicles. Under this legal framework, securing a Hungary Golden Visa through real estate fund investment requires strict adherence to statutory criteria:
- Investment Threshold: A minimum capital commitment of €250,000 into a qualifying real estate fund.
- Regulatory & Security Approvals: The fund must be registered with the Central Bank of Hungary (MNB), and the fund manager must hold national security clearance from the Constitution Protection Office (CPO).
- Asset Allocation Mandate: At least 40% of the fund’s Net Asset Value (NAV) must be invested specifically in domestic Hungarian residential real estate.
- Mandatory Lock-Up: Investors must hold their fund certificates for a statutory period of at least 5 years.
- Schengen Area Mobility: Approved applicants receive a Guest Investor Residence Permit, granting long-term Hungarian residency and visa-free travel across the Schengen Area for up to 90 days within any 180-day period.
Currency Dynamics, Taxes, and Exit Strategy Considerations
Long-term portfolio resilience requires evaluating operational realities beyond the initial statutory holding period:
- Currency Risk: Investments are frequently denominated in Euros at entry, whereas underlying property operations act in local currency (HUF). Fluctuations between EUR and HUF can impact final net yields and capital value upon exit.
- Taxation & Structural Leverage: Net outcomes depend on loan-to-value (LTV) ratios employed by fund management, as well as bilateral double-taxation treaties that dictate withholding tax rates on distributed income for non-resident investors.
- Liquidity Realization: Upon completing the 5-year lock-up, investors must navigate redemption terms set out in the fund prospectus, which may rely on secondary market transfers or orderly asset liquidations rather than instant cash payouts.
Prudential Oversight and Realistic Portfolio Expectations
Regulated real estate funds operate under strict prudential oversight, with the MNB supervising legal compliance, market solvency, and reporting standards. While professional management aims to optimize operational performance and generate targeted income distributions, yields are never guaranteed and remain subject to market conditions, management fee drag, and occupancy rates.
See: Zown Offers Up to 8% Rent Rewards in Canada
When integrated into a broader wealth strategy, managed real estate funds offer a transparent method for participating in property markets and achieving long-term mobility goals—provided investors align their liquidity expectations with the regulatory realities of the underlying vehicle.
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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2026 BRICS Summit Advances Cross Border Payment Links
September 14, 2026 | NCFA Insight | Cross Border Payments And FX, Payments Infrastructure And Money Movement, Digital Assets Blockchain And Tokenization, Competition And Market Structure
New Delhi Declaration Advances Payment Interoperability
On September 12, 2026, BRICS leaders met in New Delhi for the 18th BRICS Summit and backed further work connecting national payment and financial messaging systems. The New Delhi Declaration confirms that the BRICS Payment Task Force has been studying cross border interoperability and the use of local currencies for trade settlement and investment.
BRICS hasn't yet created a common payment network or digital currency. However, payment interoperability has moved into an official technical workstream rather than remaining a series of proposals from individual members.
The progression has been fairly quick. India proposed stronger payment and central bank digital currency connectivity in January. In August, Reserve Bank of India Governor Sanjay Malhotra confirmed that members were discussing links between fast payment systems and central bank digital currencies. The September declaration gives the Payment Task Force a formal basis to continue that work across the bloc.
The commercial backdrop has also changed significantly since we last covered the 2023 BRICS summit. The group has expanded, supply chains have been rerouted, trade relationships have become more politically charged and tariffs are again influencing where companies manufacture and sell. BRICS now accounts for nearly one quarter of global trade, while intra BRICS merchandise trade reached US$1.17 trillion in 2024.
For banks, payment companies and fintechs, that scale changes the economics of interoperability. Existing domestic payment systems already process enormous volumes. Connecting more of those systems across borders could affect routing, settlement costs and access to large emerging markets without waiting for a new monetary system to be built.
BRICS Is Starting With Payment Systems That Already Work
The declaration focuses on systems that members already operate. The Payment Task Force has studied interoperability between payment and messaging channels and discussed using BRICS currencies for trade and investment. Leaders want further work on cross border payments that are faster, cheaper and easier to access while remaining secure.
India brings considerable operating scale to that discussion. Its Unified Payments Interface processes more than 250 billion transactions annually and is accepted in 11 countries. Other BRICS members have their own domestic payment rails. Connecting those systems can be faster than designing a single BRICS network from scratch.
A merchant payment could still require foreign exchange and liquidity between two currencies. Banks would still need compliance controls, and somebody has to settle the transaction. Interoperability can reduce some of the handoffs between institutions without making those functions disappear.
See: India's RBI On AI Governance And BRICS Payment Links
Local currency settlement can develop alongside those links. A company trading between India and another BRICS economy may eventually have more ways to invoice or settle without routing every transaction through a third currency. That can remove a conversion in some transactions, although the underlying currencies still carry exchange rate risk.
Russia has pushed back against describing every BRICS payment initiative as an attempt to abandon the U.S. dollar. More payment choices and greater use of domestic currencies don't require members to stop using dollars where the economics favour them.
The New Development Bank is pursuing a related approach through financing. BRICS leaders want it to expand lending in local currencies and diversify its funding. Borrowers that can raise money in the same currency as their revenues may face less foreign exchange exposure.
Tariffs Are Adding Pressure to Diversify Trade
Payments can't be separated from what is happening to trade. The New Delhi Declaration warns that rising tariffs and other unilateral trade measures can reduce global trade, disrupt supply chains and add uncertainty for businesses. BRICS finance ministers made the same point before the summit, criticizing unilateral trade and financial measures and calling for more coordination among member economies.
The pressure is visible in 2026. The United States imposed a new 25% tariff on selected Brazilian exports in July, covering billions of dollars in goods. Brazil said it would pursue alternative markets if access to the U.S. became more difficult. India has also taken a harder line in U.S. trade negotiations while expanding commercial ties with Europe and other markets.
See: Can Canadian Fintechs Diversify Beyond The U.S. Faster?
China offers another lesson. Companies spent years moving manufacturing into Southeast Asia and India to reduce exposure to U.S. tariffs, yet some are now returning production to China because supplier networks, skilled labour and operating efficiency remain difficult to reproduce elsewhere. Tariffs can redirect investment, but they don't erase the economics of established supply chains.
BRICS members are responding by trying to strengthen trade within the bloc. India has called for more open markets, simpler customs procedures and deeper supply chain links. Intra BRICS merchandise trade has grown thirteenfold since 2003, reaching US$1.17 trillion in 2024.
Payment connectivity becomes more valuable as those trade relationships deepen. A Brazilian exporter selling into India, or an Indian company sourcing from China, benefits more from direct payment links when the underlying commercial relationship is large enough to support liquidity and repeat transactions.
For Canada and other economies heavily exposed to the U.S. market, the development is worth watching. Tariffs are pushing governments and companies to diversify customers, suppliers and financing relationships. BRICS is building payment and trade links across many of the markets companies may increasingly look to as alternatives.
CBDC Links Are Still Mostly a Design Question
Central bank digital currencies remain much less developed as a BRICS payment option. Members operate at different stages of CBDC research, testing and deployment, making a common technical model harder than connecting established fast payment systems.
Sanjay Malhotra, Governor, Reserve Bank of India:
"Various options are on the table, but it is still at discussion stage, including CBDCs and linkages of fast payment systems."
The September declaration didn't announce a CBDC pilot or identify central banks that will participate in one. There is no shared rulebook for settlement, liquidity or foreign exchange conversion and no governance structure for a BRICS CBDC network.
Fast payment links can progress without solving all of those problems at once. A connection between two existing national systems can use currencies and regulated institutions that already operate in each market. Additional bilateral links could later connect into a larger network if members agree on common technical and regulatory rules.
BRICS may therefore develop as a collection of connected domestic systems rather than one centralized network. Fintechs could compete in routing, FX, merchant payments and technical connectivity without waiting for a common BRICS currency.
NCFA has seen a similar commercial principle in other markets as direct access to payment rails expands. More direct access can give fintechs greater control over costs and service delivery, provided the regulatory and operating requirements still support a sustainable business.
More Connections Could Change Cross Border Competition
Traditional correspondent banking often sends a cross border payment through several institutions before it reaches the recipient. Each participant can add time, cost and another reconciliation step. Direct connections between national payment systems could shorten some routes, particularly where participating banks already have liquidity in both currencies.
Payment companies could help merchants reach new markets, while fintechs build routing and FX services around connected domestic rails. Banks would still provide settlement and liquidity. Wider access also brings more responsibility around operating controls, fraud and compliance, an issue we reviewed in payment network access and control.
BRICS is also examining connections between securities settlement and depositary systems. Technical discussions have looked at differences between member markets, while the proposed New Investment Platform remains under development. Compatible payment and securities systems could eventually reduce friction in both trade and investment flows.
See: Buy Canadian Returns As Trump Tariffs Hit 50% | Canada Expanding Economic Ties With UAE India And Africa
Established global payment networks and correspondent banks aren't disappearing. They have deep liquidity, global reach and mature compliance systems. BRICS members are trying to create additional routes alongside them, which can increase bargaining power and give businesses more choices when tariffs, sanctions or geopolitical disputes interrupt established channels.
The commercial impact will become visible once transactions go live. A direct connection between two major systems can be measured through settlement time, FX cost and merchant adoption. Several working links could eventually create a meaningful network across BRICS economies.
Talking Point
BRICS doesn't need a common currency to change cross border finance. The bloc already represents nearly a quarter of global trade, and tariffs are giving members another reason to diversify payment and trading relationships. If national rails begin connecting at scale, fintechs, banks and merchants gain more ways to transact outside traditional correspondent routes. The proof will be lower costs, faster settlement and sustained transaction volume once those links go live.
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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OSFI Rebalances Regulation for Growth and Competition
September 14, 2026 | NCFA Insight | Competition And Market Structure, Regulation And Policy, Capital Markets Infrastructure And Funding
Routledge Speech Puts Growth and Competition Higher on OSFI Agenda
On September 11, 2026, Superintendent Peter Routledge delivered a speech at the Economic Club of Canada, explaining how the Office of the Superintendent of Financial Institutions (OSFI) is refining its risk appetite. Financial resilience remains central, but OSFI is giving more weight to economic growth and competition when it decides whether a regulatory requirement is proportionate to the risk.
For financial technology firms, smaller banks, federal credit unions and prospective entrants, the commercial question is whether those decisions make Canada's regulated financial market easier to enter and compete in. Some fintechs may eventually seek a federal bank, trust or loan company structure. Others need regulated partners that can support new lending, payments or financial products without the economics forcing every partnership toward Canada's largest institutions.
OSFI is already changing parts of that equation. New entrants have a more structured approval process, selected capital requirements are being recalibrated and unnecessary supervisory material is being removed. The value to the market will depend on what happens to entry costs, operating economics and the number of credible competitors that reach customers.
Entry Economics Matter More Than Access
OSFI's Streamlined Approvals Framework for Targeted New Entrants is one of the clearest examples of the new competition objective. Eligible provincial credit unions and firms with innovative or emerging banking models now enter a more defined process that begins with a readiness assessment before formal approval and operational preparation.
A clearer process can materially affect a startup's economics. Legal and advisory costs continue while an application is underway, and management time spent on regulatory work is time not spent building the business. Investors can also have capital tied up well before regulated revenue begins.
Peter Routledge, Superintendent, OSFI
"We aim to create a smoother, more accessible pathway for credible new entrants navigating the federal process, without lowering our standards."
Faster decisions would reduce uncertainty, but approval itself is a poor measure of competition. Approval only matters if those firms can operate, grow and compete once they enter the market. New institutions need enough customers and revenue to absorb regulatory costs while continuing to meet OSFI's prudential requirements.
See: OSFI Clarifies Tokenized Deposits and 2027 Crypto Rules
This is especially relevant to fintechs that never become federally regulated institutions themselves. More smaller banks, trust companies and credit unions can create additional counterparties for new financial products. A fintech gains little from an open market on paper if only a handful of institutions can support the partnership economically.
Proportionate Rules Can Change Who Competes
Regulation weighs differently on a large bank and a smaller financial institution. A large bank can spread reporting and compliance expense across a vast customer base. A smaller competitor has fewer accounts and loans over which to recover the same fixed costs.
Capital rules affect the equation as well. OSFI's 2027 rules reduce the risk weight on unrated corporate small and medium sized enterprise exposures to 75% from 85%. The maximum exposure that can qualify as a small business entity for lower regulatory retail treatment also rises to $2.5 million from $1.5 million.
OSFI's 2027 package also changes the treatment of some corporate exposures, covered bonds, securitization and market risk. Category I and II small and medium sized banks can use simplified capital treatment for qualifying exposures, subject to limits. The rules also introduce a streamlined application process for smaller banks seeking approval to use internal credit models.
OSFI has made selected changes elsewhere, including residential development and covered bonds. The changes are targeted rather than a general reduction in capital standards. Their commercial significance comes from matching regulatory cost more closely to the risk an institution actually takes.
Peter Routledge, Superintendent, OSFI
"We seek to avoid the 'stability of the graveyard' in which a docile, risk-averse financial system impedes prosperous growth."
The effects aren't limited to banks. Fintechs also depend on smaller regulated institutions for partnerships, distribution and access to financial products. Smaller regulated institutions finance businesses, compete for deposits and provide services that fintechs build on top of. If prudential requirements consume more capital or operating expense than the underlying risk warrants, fewer institutions can compete effectively and fintechs have fewer potential partners.
OSFI is also removing material it considers redundant, obsolete or trivial. By April 2026, it said 52 documents and more than 600 pages had been eliminated. The result is lower recurring cost or less management time spent satisfying requirements that don't materially improve supervision.
Competition Mandates Need Outcome Data
Canada already has experience with regulators being asked to consider competition more explicitly. Ontario expanded the Ontario Securities Commission's mandate in 2021 to include fostering competitive capital markets and capital formation. NCFA reviewed that expanded growth duty in a comparison of pro innovation regulation in Canada and the UK. The OSC subsequently built out its Office of Economic Growth and Innovation and continued experimenting with regulatory relief and testing programs.
NCFA had been asking regulators to go further years earlier. Its 2018 OSC priorities submission called for better data and performance measures tied to market outcomes. Capital formation and compliance costs were among the measures that could show whether regulation was actually improving the market.
An innovation office can improve communication with a regulator, and an exemption can remove a specific obstacle. Neither proves that competition increased. If a business still cannot earn enough to support the cost of being regulated, the market doesn't gain a sustainable competitor.
See: NCFA Submission on Regulatory Burden
Investment crowdfunding provides a useful example. A competitive framework should encourage new equity crowdfunding dealers and portals to enter the market in the first place. That requires economics that can support the people, technology and regulatory work needed to operate. If the cost and complexity of registration discourage new entrants before they launch, or make it difficult for existing firms to reach sustainable scale, competition will remain limited.
NCFA raised similar concerns in its 2018 submission to Finance Canada, where regulatory fragmentation and compliance costs were identified as barriers to fintech growth. The association looked at the same issue in a a more recent analysis of financial market access and productive growth. Access has economic value when firms can turn it into customers, capital and competitive products.
Provincial regulators can make their competition mandates easier to evaluate by publishing more market outcomes. Approval times can be compared before and after reforms. Regulators can show how many entrants begin operating and whether they remain active. They can also disclose enough data to assess whether smaller firms are raising more capital or taking a larger role in the market.
Those metrics would distinguish regulatory activity from competitive results. Supporting fifty firms through an innovation office is useful information. Knowing how many of those firms reached the market, survived and won customers tells stakeholders much more about whether the mandate is working.
OSFI Can Make Competition Measurable
Routledge addressed the issue directly at the Scotiabank Financials Summit on September 10.
Peter Routledge, Superintendent, OSFI:
"Our role is to ensure the prudential framework does not create unnecessary barriers to responsible competition."
OSFI already has a decent starting point because its new approvals process includes a public dashboard. Processing times can show whether regulatory entry becomes faster and more predictable. OSFI could also report how many applicants become operating institutions and how long they remain active.
OSFI should also show whether smaller institutions are actually seeing lower regulatory costs, better funding access and more room to compete. If proportional supervision is working (or not), those changes should be visible in recurring compliance costs, capital use and funding outcomes.
See: Canada's C$14T Non Bank Financial System Opens Up
Market performance should complete the picture. A new entrant that reaches customers and grows while maintaining strong capital is evidence that entry and resilience can coexist. A faster application process followed by few successful competitors would point to remaining barriers elsewhere.
Canada's largest banks will retain substantial advantages in distribution and customer scale. OSFI cannot remove those commercial strengths, nor should it try. Its role is to ensure that prudential requirements don't add an unnecessary regulatory advantage on top of them.
Talking Point
OSFI's revised risk appetite only matters if it changes who can compete and at what cost. More credible entrants, lower unnecessary regulatory burden and better funding economics would be stronger evidence of success than faster approvals alone (provided financial resilience remains intact).
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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