Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Press Releases
Nova Credit and RBC Partner to Bridge Newcomer Credit Cap
Release | Jun 21, 2024
Image: Nova Credit and RBC partnership to support newcomers
Nova Credit and RBC Join Forces to Simplify Financial Start for Newcomers
Nova Credit has announced a partnership with the Royal Bank of Canada (RBC) to make it easier for newcomers to Canada to obtain credit. Newcomers to Canada frequently find it difficult to obtain loans, credit cards, or mortgages since they do not yet have a Canadian credit history.
See: RBC and Rogers Cybersecure Catalyst Launch New Fintech Incubator
Nova Credit's technology solves this problem by transforming international credit data into a format that Canadian lenders can comprehend and apply. This integration enables newcomers to carry their credit history from their home countries, thereby bridging the gap and providing more seamless access to financial goods in Canada.
Nova Credit is a credit infrastructure and analytics innovator committed to providing alternative credit data solutions. Nova Credit makes it easier for immigrants and newcomers to access financial services by converting international credit data into local equivalents. Report: 2024 State of Alternative Credit Data
Partnership Features
- This credit information passporting technology will be implemented into RBC's Global Credit Connect, allowing for real-time translation and integration of overseas credit histories into Canadian-equivalent scores.
- Eligible arrivals can now qualify for a variety of financial services, including credit cards and auto loans, depending on their overseas credit history.
- The partnership promises to make newcomers' experiences more inclusive and welcoming, as well as to help them integrate and stabilize their finances.
See: BDC’s $250M Boost for Inclusive Entrepreneurship in Canada
Janet Boyle, Senior Vice President at RBC:
"Our goal is to make the financial transition for newcomers as seamless as possible. This partnership with Nova Credit allows us to extend immediate financial services to new Canadians, recognizing their creditworthiness from day one."
Collin Galster, Head of International at Nova Credit:
"Working with RBC is a major milestone in our mission to support immigrants. Together, we are creating a more inclusive financial system that acknowledges the diverse backgrounds of new Canadians."
A Step Towards Financial Inclusivity
This partnership has the potential to make Canada a more welcoming and financially accessible place for newcomers.
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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BDC’s $250M Boost for Inclusive Entrepreneurship in Canada
BDC | Release | Jun 20, 2024
Image: Freepik
BDC Announces $250 Million Investment to Empower Diverse Entrepreneurs in Canada
The Business Development Bank of Canada (BDC) has reaffirmed its commitment to fostering inclusive entrepreneurship by announcing a $250 million investment to help majority-owned Indigenous, Black, and Women-led firms to help overcome long-standing obstacles to work towards establishing a more diversified and dynamic entrepreneurial ecosystem in Canada.
How Will $250 Million be Allocated?
Acknowledging the funding gap that new diverse firms are faced with, BDC has launched a $50 million program to promote early-stage enterprises run by women, Indigenous, and Black entrepreneurs. This program offers financial aid as well as key training to businesses with revenues under $3 million, assisting them in overcoming challenging entry barriers and building trust in mainstream financial services.
See: Trends in Reg CF for Minority and Women Founders
BDC Capital, the bank's investment section, has introduced two new $100 million platforms aimed at Indigenous and Black-led firms. These efforts are intended to supplement the existing $500 million Thrive Platform, which helps Indigenous and Black women entrepreneurs. By collaborating closely with community leaders, BDC hopes to build supportive and effective investment environments that are suited to the requirements of these areas.
To ensure that inclusion is included into all aspects of client service, BDC has formed a new Inclusive Entrepreneurship Team to implement region-specific programs that are targeted to specific requirements of minority entrepreneurs, improving both accountability and the impact of business development efforts.
Well Documented Challenges for Diverse Entrepreneurs
Current research identifies substantial barriers that diverse entrepreneurs encounter while raising finance. According to studies, minority-owned firms have a more difficult time obtaining capital than non-minority enterprises. Systemic biases, a lack of access to networks, and low faith in traditional financial institutions all contribute to these inequities. According to a research published by the Canadian Venture Capital and Private Equity Association (CVCA), Black and Indigenous businesses earn a disproportionately low share of venture capital investment.
See: Fast Company Survey Finds Capitalism at Crossroads
Similarly, the Brookfield Institute for Innovation and Entrepreneurship found that women and minority entrepreneurs are less likely to acquire bank loans and rely more on personal resources and informal funding sources. These obstacles highlight the importance of specific initiatives, such as those launched by BDC, in levelling the playing field and supporting the growth of diverse Canadian firms.
Lise Birikundavyi, Managing Partner, BKR Capital:
“With less than 0.5% of venture capital dollars in North America going towards Black entrepreneurs, there is a clear gap to fill. Since we started our fund focused on Black founders, we have seen an incredible amount of quality opportunities, and we believe it is great news to see an organization like BDC join forces to create a more diversified and robust venture capital industry.”
See: The Psychological Price of Entrepreneurship
Conclusion
By addressing systemic hurdles and providing targeted support to Indigenous and Black-led firms, BDC is helping to create a more fair and diverse entrepreneurial landscape. The $250 million investment will spur innovation and economic progress while more accurately reflecting Canada's diverse population.
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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Canadian Securities Regulators Extend Role of Exempt Market Dealers
Capital Raising | Release | Jun 20, 2024
Image: Freepik/jcomp
New Time-Limited Exemption Allows EMDs to Sell Prospectus Offerings for Growth Capital
The Ontario Securities Commission (OSC), Autorité des marchés financiers (AMF), British Columbia Securities Commission (BCSC), Financial and Consumer Affairs Authority of Saskatchewan (FCAA), Alberta Securities Commission (ASC), and Nova Scotia Securities Commission (NSSC) are allowing exempt market dealers (EMDs) to participate as selling group members in prospectus offerings, increasing their potential to assist business growth.
See: Final Report: Ontario Capital Markets Modernization Committee Recommendations
- Historically, EMDs have helped start-ups and small to medium-sized firms access finance by distributing securities under prospectus exemptions. However, as these companies scale they tend to use full prospectus offerings, which EMD participation has been limited due to regulatory restrictions.
- The recently announced time-limited exception is intended to address these hurdles. The exemption allows EMDs to join as selling group members in prospectus offerings, offering an additional route for capital acquisition for growing enterprises.
- Investment dealers will continue to play key roles in these offerings, including underwriting.
Grant Vingoe, CEO of the OSC:
“Creating favorable conditions for business success is pivotal to our economic prosperity. Today's measures underscore the commitment of securities regulators to foster the growth and success of our capital markets,”
Stan Magidson, CSA Chair and Chair and CEO of the ASC:
"We are proud of the collaborative efforts among Ontario, Quebec, British Columbia, Saskatchewan, Alberta, and Nova Scotia to implement these measures. Harmonizing regulations to support Canadian businesses is a priority.”
This new exemption was one of the recommendations in the Ontario Capital Markets Modernization Taskforce 2021 report, as well as similar efforts in other jurisdictions. Note, New Brunswick's securities regulatory body intends to issue a similar local blanket order soon.
See: OSC Activates 3 New Interim Class Orders to Boost Early-Stage Capital
Outlook
Hopefully this new exemption allowing EMDs to participate in prospectus offerings will help improve the current capital-raising environment for early-stage and scaling companies. This initiative will strengthen the relationship between EMDs and their growing clients creating a more dynamic market and opportunity.
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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Banking Consolidation as Canadian Western Bank is Acquired
Banking | Jun 13, 2024
Image: Freepik/rawpixel.com
National Bank to Purchase Canadian Western Bank for $5 Billion in Shares
The National Bank of Canada has announced that it's reached a final deal to purchase Canadian Western Bank (CWB) for $5 billion in an all-share transaction where every CWB share will be swapped at a National Bank share price of $0.450. The purpose of the acquisition is to improve National Bank's banking services across Canada, and in particular in Western Canada.
See: Canadian Banks Face Scrutiny Over Sustainability Claims
- With 39 branches, CWB has a substantial presence in Western Canada, where the acquisition expands National Bank's network.
- Combining assets and resources of the two banks will provide consumers with cutting better tech and a wider choice of financial products and services.
- The National Bank projects $270 million in pre-tax cost and funding synergies every year.
- Following the announcement, CWB shares increased by more than 20%, demonstrating strong investor confidence in the deal's strategic advantages.
Regulatory Approvals Required
The Financial Consumer Agency of Canada (FCAC), Competition Bureau, and Office of the Superintendent of Financial Institutions (OSFI) must all provide their regulatory approvals before the acquisition can proceed. It is anticipated that the deal would close by the end of 2025.
See: National Bank acquires majority stake in fintech startup Flinks in $103M deal
Laurent Ferreira, President and CEO of National Bank:
“This transaction is about growth and brings together two great banks with a complementary footprint in personal and commercial banking, and supports our objectives in Western Canada and across the country. CWB has developed an attractive banking franchise with a reputation for exceptional service with deep customer relationships across a number of priority industries and service lines. This combination will provide customers with access to a broader range of services, expertise and products, along with the benefits of supporting technological investment and innovation."
Banking Industry Consolidation
The banking industry continues to consolidate as it seeks efficiencies and scale in a competitive market. Other recent mergers include RBC's acquisition of Canadian division of HSBC (2024) - see sale completed, and Scotiabank buying ING Direct (2012). These trends highlight the importance of strategic alliances and mergers to expand and preserve competitiveness.
Chris Fowler, CEO of CWB:
"Together, we can offer Canadians more choice by combining CWB’s four-decade legacy of serving business owners and their families with National Bank’s scale, complementary market expertise and the technological capabilities necessary to accelerate our growth.”
See: The Role of Digital Banking in Supporting SMEs and Startups
Closing
National Bank's position in Canada is strengthened by this strategic merger, which also offers the promise of improved services and significant cost savings.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Robinhood Acquires Bitstamp Crypto Exchange for $200 M
Crypto M&A | Jun 7, 2024
Image: press release
Robinhood Flies in the Face of the SEC and Acquires Bitstamp Crypto Exchange After Receiving Wells Notice
While under crypto-related regulatory scrutiny from the U.S. Securities and Exchange Commission (SEC), Robinhood has announced the acquisition of the European cryptocurrency exchange Bitstamp for $200 million to boost Robinhood's crypto trading capabilities and expand its customer base in Europe.
See: SEC Issues Wells Notice to Robinhood Over Crypto
Bitstamp Acquisition
- Bitstamp, founded in 2011 and based in Luxembourg, is a top 20 centralized crypto exchange with a reputation for reliability and security.
- Institutional clients trust Bitstamp for its extensive order books, dependable trade execution, high quality API access, institutional lending, staking, and the white label solutions with Bitstamp-as-a-service.
- Has more than 50 active licenses and registrations worldwide and can push clients to Robinhood from the US, EU, UK, and Asia.
- Daily trading volume of approx. $315 million serving more than 4 million customers in 100 countries according to Coinmarket cap
Robinhood's Crypto Expansion
- In 2023, Robinhood reported $1.9 billion in total revenue, a 37% year-over-year gain. View full Q4 and 2023 financial results here.
- 23 million active, funded users.
See: U.S. House passes FIT21 with Bipartisan Support
- Crypto trading volume rose by 30% in the first quarter of 2024
- Through the acquisition of Bitstamp, Robinhood expands its user base, improves operational skills, and receives access to a reputable cryptocurrency platform. Significant synergies from this transaction are anticipated, strengthening Robinhood's position as a competitor in the cryptocurrency marketplaces.
- Bitstamp's core spot market, which features over 85 traded assets and provides services like lending and staking, will enhance Robinhood's cryptocurrency offering.
Over the past few years, the company has steadily expanded its crypto services - here's a brief overview timeline:
- June 6, 2024: Robinhood to acquire Bitstamp for $200 million.
- May 30, 2024: Robinhood launches crypto trading API.
- May 15, 2024: Launches staking in Europe.
- May 2024: Receives a Wells Notice from the SEC, alerting it to possible enforcement action pertaining to its cryptocurrency operations. Issues response May 6 here
See: Canada’s Proposed Mutual Fund Crypto Regulations 2024
- Mar 2024: Launches crypto wallet for android users.
- Dec 2023: Adds a cryptocurrency wallet function, giving customers more control over their digital assets.
- Oct 2023: Robinhood begins its European development plan with the goal of growing its market share outside of the United States.
- Aug 2023: Fined $30 million by New York's DFS.
- Aug 2023: New coins are added to Robinhood's trading platform as part of an expansion of its cryptocurrency offerings.
Outlook
The company's ability to navigate regulatory challenges while pursuing ambitious acquisitions will be critical in maintaining its momentum and achieving long-term success in the highly competitive crypto industry.
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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Zum Rails’ Major AI-Driven BaaS Initiative and Strategic Hire
Release | Jun 7, 2024
Image: Zūm logo
Zūm Rails hires Miro Pavletic to lead new AI-driven banking project
A scaling Canadian fintech business Zūm Rails has announced the hiring of Miro Pavletic who joins Zūm to manage its large-scale AI-driven Banking-as-a-Service (BaaS) project. This is a key move to expand Zūm Rails' unique financial offerings and solutions.
Miro Pavletic
Fintech expert with a wealth of banking and finance experience, Miro Pavletic joins Zūm Rails as a key player in their newest project. Previously, Pavletic was the Co-founder and CEO of Stack, a digital challenger banking app that was acquired by Credit Sesame in 2020.
See: Züm Rails’ $10.5M Boost for North American Expansion
Pavletic will lead Zūm Rails’ BaaS product roadmap, which will integrate with Zūm Rail’s current payment services and include real-time fraud assessment, identity validation, and transaction settlement capabilities. Pavletic is committed to accelerating the development and implementation of these features on a unified platform, enabling businesses to surpass regulators' open banking deadlines and utilize artificial intelligence to effectively manage risk.
Key Developments and Financing
Since founding in 2019 Zūm Rails self-funded its way to profitability and has become a significant player in the North American payments market. Their 'omni-rail' solution combines instant payments with open banking to create a streamlined transaction process that supports multiple payment methods like Visa Direct, Mastercard, direct bank account linking, and Canada's Interac network.
In February of this year, Zūm Rails was in the spotlight when it successfully completing a $10.5 million CAD Series A fundraising round led by Arthur Ventures. The purpose of this capital infusion was to strengthen their open banking and quick payment capabilities, as well as to increase their market share in the United States. The company intends to launch new BaaS capabilities and a FedNow service in the United States that will allow companies to process FDIC-insured payments in a matter of seconds.
See: Implications of the BaaS Synapse Collapse
Firms like Plaid, Finicity, and established banks that are pursuing open banking are a few of Zūm's core competitors. Zūm Rails stands out in a crowded market thanks to its seamless integration of quick payments and open banking. This is the core of its unique value offer (in a fragmented market).
Closing Outlook
Zūm Rails is in a strong position to grow its market share and accelerate its creative activities, thanks to the smart hiring of Miro Pavletic and recent funding injection. As Zūm continues to innovate, stakeholders can expect a wave of new developments that will enhance the efficiency, security, and scope of financial transactions across North America.
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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Paxos International Launches Yield-Bearing USDL Stablecoin
Stablecoins | Jun 6, 2024
Image: Freepik
Paxos International Introduces Lift Dollar (USDL) Regulated in the Abu Dabi Global Market (ADGM)
The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has regulated Paxos International, an affiliate of Paxos, as an entity who has announced the launch of Lift Dollar (USDL), a regulated yield-bearing stablecoin, that offers daily interest directly into users' wallets while being closely supervised by regulators.
Highlights
- Short-term, highly rated, liquid US government securities and cash equivalent reserve assets will offer returns for holders of USDL. Every day, the yield is sent to holders' wallets programmatically using an Ethereum smart contract.
See: PayPal Introduces Confidential Stablecoin Transfers
- USDL operates under a strict regulatory framework of the FSRA ensuring Paxos International
- USDL is backed 1:1 by US dollar deposits just like other stablecoins issued by Paxos. This ensures stability and promotes growth through daily dividends.
Charles Cascarilla, Member of the Board of Directors of Paxos International:
"USDL is a first-of-its-kind—a regulated product, earning and paying safe yield on a daily basis. Until now, only centralized issuers have benefitted from the economics of stablecoin reserves. Paxos International has reimagined this dynamic so that all token holders can safely use and grow their regulated USD stablecoin holdings."
Stablecoins Continue to Innovate
Other Examples of Yield-Bearing Stablecoins
With a market capitalization of $162.3 billion currently, stablecoins have been growing and diversifying significantly. By 2024, there will be a number of yield-bearing stablecoins available worldwide, and new players are entering the market on a regular basis. A few noteworthy instances that provide yields using different financial methods are as follows:
- Midas (stUSD): This stablecoin interacts with decentralized finance (DeFi) platforms like as Uniswap, MakerDAO, and Aave, and is backed by US Treasury securities. By using Circle Internet Financial's USDC and asset management BlackRock as on-ramps, it seeks to generate yields.
- The Archax Yield Service provides stablecoin holders with yield-generating products like regulated Money Market Funds (MMFs). This enables owners of stablecoins to transform their assets into yield-bearing, regulated, tokenized holdings.
Market Trends
- The market is still led by USDC and USDT thanks to the US dollar's worldwide clout and the current higher interest rate environment.
- The demand for low-volatility assets and the integration of cryptocurrencies with established financial systems are stoking interest in stablecoins linked to regional fiat currencies.
- With frameworks like MiCA (Markets in Crypto-Assets) offering clarification and FIT21 presently before the U.S. Senate, regulation is becoming more clear. In order to give the stablecoin market more transparency and clearer norms, regulatory frameworks are changing. Because of the FSRA's strict regulatory control, USDL and related products are kept up to date with dependability and confidence.
See: Moody’s Analytics on Stablecoin Depegging
- Innovations like USDL, which offer yield directly to holders, are setting new standards in the stablecoin market by offering income-generating opportunities, making them attractive to a broader range of investors.
- Overcollateralization and diversification of collateral are emerging as key strategies to ensure resilience and stability of stablecoin ecosystems and help mitigate risks associated with single-point failures in collateral assets.
Overview of Abu Dhabi Global Market (ADGM)
Situated in Abu Dhabi, United Arab Emirates, on Al Maryah Island, ADGM is an international financial hub. ADGM was founded in 2013 with the objective of strengthening Abu Dhabi's standing as a worldwide centre for finance and business.
- Operates on its own legal framework founded on English common law, guaranteeing strict rules and guidelines for conducting business. The main regulatory organization in ADGM is the FSRA.
- Provides a broad range of financial services, with a focus on fintech advances, including capital markets, asset management, banking, and insurance.
- Has launched a number of programs, such as the Regulatory Laboratory (RegLab), a sandbox program to aid in the creation of cutting-edge financial services and products.
See: Challenges in Global Crypto Regulations – Lessons from Dubai
- Attracts international capital and encourages economic diversification, both of which are important contributions to the UAE's Vision 2030.
- By offering a controlled environment for digital asset trading and custody services, it has taken the initiative to promote the ecosystem of digital assets.
ADGM provides a business-friendly environment:
- 100% ownership by foreigners
- No limitations on the repatriation of capital
- Tax breaks for a predetermined amount of time
- A thorough legal and regulatory framework that guarantees the efficiency and transparency of corporate operations
Outlook
With the introduction of USDL by Paxos International, stablecoins have entered a new era that promises stability and yield in a regulated setting, which is well positioned to propel and transform the digital asset landscape.
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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