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
PayPal Introduces Confidential Stablecoin Transfers
Stablecoins | May 31, 2024
Image: Solana
PayPal's PYUSD Stablecoin Enhances Privacy with Solana Integration
With the integration of PayPal's PYUSD stablecoin onto the Solana blockchain comes 'confidential transfers'—a function that preserves regulatory visibility while keeping transaction amounts private—have been added to its global payment offerings. This innovation ensures that financial authorities can still monitor transactions for compliance purposes while maintaining customer privacy by enabling merchants to hide transaction details from them.
Solana's Contribution to Improving Privacy
Solana blockchain was chosen because of its sophisticated programmability and fast transaction capabilities, which means digital payments cost less time time and money, a competitive advantage over conventional payments and even other blockchain networks. Its token extension standard makes development easier and provides enterprise-ready solutions for secure transactions. These transfers achieve a balance between transparency and privacy, which is essential for stopping illegal activity and safeguarding user data. Several use cases are made possible by PYUSD on Solana, including as almost instantaneous cross-border payments, economical business transfers, international payouts, microtransactions, and Web3 payments.
Global Trend of Stablecoin Privacy
PayPal's decision fits into a broader pattern wherein central banks and private businesses are investigating technology that improves privacy in digital transactions. Similar functionalities are being added by other stablecoin issuers like Tether and Circle while still complying to stringent legal requirements. The Federal Reserve and the Bank of England are two examples of central banks creating frameworks for Central Bank Digital Currencies (CBDCs) that guarantee private, safe transactions under regulatory supervision.
See: PayPal’s Legal Win Helps Shape Future of Digital Wallets
Stablecoin issuers face serious dangers associated with data breaches and central bank surveillance, even as they improve transaction privacy. These organizations seek to safeguard user data and maintain compliance by putting advanced security processes and regulatory frameworks into place. The creation of capabilities for confidential transfers on platforms such as Solana is an important step in striking a balance between privacy and legal needs.
Conclusion
The integration of PYUSD by PayPal on Solana is an example of how digital currencies can improve efficiency and privacy. Digital transactions should become more secure and user-friendly in the future as long as central banks and private businesses keep innovating.
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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VoPay Launches TXB Solution for Banks and Credit Unions
VoPay | Release | May 29, 2024
Image: Freepik
VoPay announces TXB, an API-first solution to enhance transaction banking and cash management for banks and credit unions
Canadian fintech, VoPay, just announced the release of its Transaction Banking (TXB) solution, which aims at assisting banks and credit unions to implement API-first transaction banking and cash management systems. The TXB solution offers an API-first architecture, which makes it seamless to integrate with existing systems. With this approach, banks and credit unions can take advantage of automated transaction workflows, which will result in enhanced operational efficiency.
Highlights
- TXB enables North American financial institutions to launch a range of API-first solutions that address virtual accounts, multi-layer ledger management, multi-currency cash management, process automation across various payment rails, and real-time visibility and centralization of cash.
- White-label global payments to send, receive, and manage accounts and payments anywhere in the world, building modern, automated, and API-led experiences with dynamic payment tracking. Receive end-to-end visibility across the chain, from initiation through to beneficiary credit, and information about the movement of the payments, charges, and even the timing of credit.
See: Canadian Fintech VoPay and Mastercard Partner to Move Money
- Smart routing optimization for cost-effective and rapid delivery with better principal protection.
- Initiate API payments and collections on-demand with US ACH, CAD EFT, Push-to-Card, RTP, and more.
Hamed Abbasi, Co-Founder and CEO of VoPay:
"We are thrilled to unveil TXB, the latest evolution of the VoPay platform. This launch is a direct response to the evolving needs of businesses as we continually strive to anticipate and address the next frontier in business solutions, empowering organizations to scale and operate with greater efficiency. I am immensely proud of the innovative spirit exhibited by our team and the unparalleled uniqueness of this product. With unwavering support from our partners and customers, TXB is poised to elevate VoPay to new heights on a global scale."
See: NCFA Congratulates Canadian Fintechs Selected for the UK’s Fintech CTA Program
Why This Matters
VoPay’s TXB technology transforms transaction banking for financial institutions that use API-first structures to improve security, efficiency, and operational performance while enabling banks and credit unions meet growth goals and offer better services to their customers. TBX will become available July 1 to existing customers. Not a customer? Speak with a specialist here.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Katipult Announces Investment Dealer Partnership
Capital Markets | Release | May 29, 2024
Image: Freepik/rawpixel,com
After Record Year of Capital Raising with $647 Million Raised in 2023, Katipult Strikes Partnership with Leading Investment Dealer
A leading Canadian fintech company, Katipult Technology Corp. (TSXV: FUND.V), has announced a strategic integration with a leading investment dealer. The deal will combine Katipult's latest technology with the investment dealer's wide market reach and expertise. The partnership will result in the ability to offer greater operational efficiency in the capital raising procedure and more streamlined compliance management across a wider client base.
See: Katipult’s Growth Surges in 2023 Raising $647M
By integrating with a leading investment dealer, Katipult is now well positioned to offer clients industry-leading levels of service and efficient operations across both debt and equity market transactions. The deal will boost Katipult's market standing and its cutting-edge DealFlow platform.
Gord Breese, CEO of Katipult:
"This collaboration is a testament to the robust capabilities of our DealFlow platform and our commitment to driving innovation in the fintech space. We are excited about the opportunities this partnership presents for our clients and the broader capital markets."
2023 Highlights and Statistics (more)
- Capital Raised: $647 million, more than doubling 2022's $318 million.
- Transaction Volume: 19,018 transactions, a 6.8% gain.
- Deal Launches: 636 new deals, up 55% from the previous year.
- Average Transaction Value: $78,000, an increase over 2022's $48,000.
See: Digital Transformation in Capital Markets: TSX Launches New ‘Venture Forward’ Junior Exchange Market
Outlook
Moving forward, Katipult is now well positioned for further growth and innovation. This partnership should increase its market reach, bring further improvements to its product offerings, and help further streamline the capital raising process.
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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Lightspeed Partners with Uber Direct and Uber Eats
Payments | Release | May 24, 2024
Image: Lightspeed partners with Uber Eats Marketplace and Uber Direct, CNW Group/Lightspeed Commerce Inc
Lightspeed partnership with Uber Direct and Uber Eats to unlock new opportunities for merchants
Lightspeed's new North American partnership with Uber Direct and Uber Eats is expected to streamline delivery services and operational capabilities for merchants like hotels, restaurants, and retail, while expanding their market reach by accessing millions of new potential customers.
- The new partnership promises cost-effective delivery through Uber Direct, keeping merchants free from the headache and resources needed to build and maintain a delivery fleet. This will slash overhead costs and logistics, so merchants can focus on their core operations and growth.
- The Montreal-based payments technology company said the integrations create an option for Lightspeed customers to list menu offerings and receive orders direct from the Uber Eats marketplace. They will also be able to take orders through their own branded website with the order-anywhere system of Lightspeed and then use Uber Direct for delivery. Other offerings from Uber Direct include a same-day or next-day delivery service that uses API integrations and no-code tools for its business customers.
See: Embedded Finance: Banking Meets the Customer
- Prior to the company's collaboration with Lightspeed, Uber Direct and Uber Eats managed their integrated payments workflows through their own payment systems, a mix that included in-house processing, third-party payment providers like Stripe and Adyen, and mobile payment integrations such as Apple Pay, Google Pay and PayPal.
Conclusion
This collaboration enables merchants to focus on their core operations and growth while offering customers efficient and cost-effective delivery options. Ultimately, this partnership fosters innovation and growth in the fintech space, setting a new standard for delivery services and operational capabilities for merchants.
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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Corporate Venture Capital in Canada: Insights and Challenges
Corporate Venture Capital | May 17, 2024
Image: The State of Corporate Venture Capital in Canada 2024, Deloitte and BDC
The State of Corporate Venture Capital (CVC) in Canada 2024
Published this week, "The State of Corporate Venture Capital in Canada," produced by Deloitte Ventures in collaboration with BDC Capital, highlights the potential for growth and innovation that CVC can bring to Canadian corporates, startups, and the broader economy. However, it also underscores significant challenges and areas where Canada lags behind its international counterparts, particularly the United States. Read the release
Key Findings
- Despite the growing number of CVC initiatives, only 6% of Canadian public companies with over $1 billion in annual revenue participate in direct VC investments, compared to 40% of similar U.S. companies. This stark contrast highlights the need for greater engagement by Canadian corporates in venture investing. Slower adoption.
- CVC offers a "triple win" of strategic benefits for corporates, startups, and the economy. Corporates gain access to new technologies, markets, and diversified profit streams. Startups benefit from the resources, expertise, and brand recognition of large corporates. The economy enjoys job creation, productivity gains, and competitive innovations. For example, Deloitte Ventures' $150 million initiative aims to catalyze growth in important verticals such as fintech and worktech, fostering innovation and job creation.
See: AI Metamorphosis in Venture Capital
- Canadian CVCs have seen significant growth in deal activity, nearly tripling between 2019 and 2022. However, this momentum slightly waned, with a drop in the total number of deals from 141 in 2022 to 68 in 2023. This fluctuation suggests the need for sustained efforts to maintain and grow CVC participation.
- Canadian CVCs are active on the global stage, with 53% of their deals in 2023 involving foreign companies. This reflects the smaller size of the Canadian market and the necessity for Canadian corporates to look globally to stay competitive.
Image: Figure 6 from The State of CVC in Canada 2024 (Deloitte/BDC)
Food for Thought
The report is a thorough examination of the current landscape and potential future of CVC in Canada. However, there are some notable exclusions that would have been interesting to discuss:
- The report does not address why CVC in Canada significantly lags behind the U.S. Understanding these reasons is crucial for developing strategies to close the gap. For instance, the participation rate of U.S. public companies in CVC is approximately six times higher than that of Canadian companies.
See: Insights and Challenges of Raising Capital via Reg A+
- The report lacks a detailed analysis of the financial performance (ROI) of CVC initiatives in both Canada and the U.S. which one would think is what investors including CVCs would be interested in knowing. For many corporates, financial returns are the primary driver of investment decisions.
- The report could have benefited from direct feedback from the 94% of Canadian publicly traded companies that do not have a VC subsidiary? Understanding their reasons for not engaging in CVC could provide valuable insights for encouraging broader participation. A direct survey of these companies could reveal barriers such as risk aversion, lack of expertise, or insufficient capital.
Richard Remillard, President of RCG Group and Board Director NCFA Canada says it well:
" This Deloittte paper prepared in conjunction with BDC points to some revealing information about the state of corporate venture capital(CVC) in both the US and Canada. Unsurprisingly, Canada trails significantly behind the US on this front. The paper notes that a mere 6% of publicly-traded Canadian corporations have CVC's versus 19% of those in the US. This gap has long been noted and decried by venture capital industry participants, including BDC. Where the paper is lacking is in identifying the source(s) of this weakness in the Canadian risk capital ecosystem. It could be a function of Canada simply not having a substantial number of publicly-traded firms compared to the US - and, many of the latter having received venture capital funding previously. Another factor might be the greater corporate concentration in Canada than in the US that is visible in many industries from banking to telecom, airlines, retail grocery and rail transportation. Or, it could be the business culture in Canada, long considered more risk averse than it is south of the 49th parallel. As well, and importantly, it could simply be the result of the relative lack of transparency about the return on investment(ROI) of the CVC segment of the venture capital asset class to say nothing of the relative illiquidity of venture investments. ROI is missing in action in the Deloitte paper which does spend some time and effort in discussing the overall benefits of investing in tech in Canada - a curious omission. Finally, the paper would have been strengthened if some of the 94% of corporations in Canada had been canvassed about their decision(s) to avoid the CVC route or to get out of the asset class, as some have done in years gone by, in light of the internal management challenges pertaining to remuneration of CVC managers relative to managers in the parent firm."
Outlook
Corporate Venture Capital holds promise for Canada. This requires addressing the barriers to entry, providing clear financial performance metrics, and fostering a culture that values long-term strategic investments. By doing so, Canada can unlock the potential of its startups, drive economic growth, and become more competitive on the global stage.
Download the 32 page PDF report --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Valour Inc. Launches First Yield-Bearing Bitcoin ETP
DeFi | May 15, 2024
Image: Freepik
Innovative Yield-Bearing Bitcoin Exchange Traded Products (ETPs) by Valour Inc.
Valour Inc., a subsidiary of DeFi Technologies, is partnering with the Core Foundation to launch the world's first yield-bearing Bitcoin (BTC) Exchange Traded Products (ETPs). This innovative financial product aims to provide investors with returns directly from blockchain operations, specifically through Core Chain's block rewards, without the need to move Bitcoin off its network.
- Unlike traditional passive Bitcoin instruments, this ETP provides active yield, deriving income from blockchain operations without transferring the underlying Bitcoin off the network.
- The collaboration utilizes the Core Chain, a Bitcoin-powered, EVM-compatible blockchain that integrates Bitcoin miners and stakers into its security protocol. This strategy enhances the utility of Bitcoin and introduces new investment mechanisms within the blockchain ecosystem.
See: Coingecko 2024 Report: Investing in Tokenized RWAs
- As part of the initiative, Valour Inc. will manage a validator node on the Core Blockchain. This involvement boosts the blockchain's security and efficiency and also positions Valour to capitalize on validator commissions, strengthening its role in the decentralized finance (DeFi) sector. The strategic commitment is further underscored by Valour's plan to stake $100 million in Bitcoin with the Core Chain. This significant investment demonstrates confidence in the platform's stability and the long-term viability of yield-bearing Bitcoin assets.
Who is Involved
The key players involved in this initiative include:
- DeFi Technologies: The parent company of Valour Inc., which specializes in bridging the gap between traditional capital markets and decentralized finance.
- Valour Inc.: The subsidiary of DeFi Technologies that developed the ETP.
- Core Foundation: Collaborates with Valour to leverage the Core Chain technology for the ETP.
Why It's Important
This development is significant because it represents a novel integration of traditional financial mechanisms (like yield from investments) with the emerging technologies of blockchain and cryptocurrencies. By offering a yield-bearing ETP, Valour Inc. not only enhances the utility of Bitcoin as more than just a speculative asset but also promotes its use in more diverse financial portfolios.
See: Canada’s Proposed Mutual Fund Crypto Regulations 2024
As these ETPs blend the boundaries between decentralized finance and conventional financial systems, they might influence future regulatory frameworks and market structures.
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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OSC Activates 3 New Interim Class Orders to Boost Early-Stage Capital
Capital Raising | May 13, 2024
Image: Freepik/jcomp
The Ontario Securities Commission Publishes Three (3) New Interim Class Orders to Bolster Early-stage Capital Raising
The Ontario Securities Commission (OSC) has published three new interim class orders to foster capital formation, offering targeted relief and clear directives to specific groups within Ontario’s financial ecosystem. Effective May 9, 2024, these orders address not-for-profit angel investor groups, early-stage businesses, and streamline reporting processes under the self-certified investor prospectus exemption. Here, we break down the essential features and limitations of each order, clarifying their purpose, target audience, and anticipated impact on the markets.
Grant Vingoe, Chief Executive Officer of the OSC:
“New and growing businesses play an essential role in our economy, contributing to job creation and driving productivity gains through innovation and competition. These initiatives reflect the OSC’s commitment to fostering the conditions for growth and innovation in Ontario’s capital markets without compromising investor protection, as outlined in our recently released strategic plan.”
1. Ontario Instrument 32-508: Not-For-Profit Angel Investor Group Registration Exemption
- Tailored for Ontario-based not-for-profit angel investor groups that support early-stage businesses by connecting them with potential angel investors.
- This exemption allows not-for-profit angel investor groups to facilitate investments without registering as dealers. It permits these groups to identify Ontario early-stage businesses, introduce them to their members, and organize regular presentations and due diligence sessions without the stringent requirements typically associated with dealer activities.
See: OSC TestLab selects 7 businesses to help improve new capital markets testing environment
- The group must operate on a not-for-profit basis within Ontario, with no more than 500 members who must all be either accredited or self-certified investors. The exemption restricts groups from engaging in public advertising, preparing offering documents, or handling investment transactions directly.
- By reducing the regulatory load on these groups, the OSC facilitates a more robust support structure for startups, potentially increasing the flow of capital to innovative ventures and accelerating economic growth.
2. Ontario Instrument 32-509: Early-Stage Business Registration Exemption
- Designed for early-stage businesses in Ontario looking to raise initial capital through direct marketing and simplified capital-raising activities.
- This exemption enables eligible early-stage businesses to engage in capital-raising activities directly, such as through online promotions and during demo days, without needing to register as dealers. It allows businesses to raise up to $3,000,000 from accredited and self-certified investors.
- Businesses must be headquartered and operational in Ontario, not previously involved in securities fraud or violations, and cannot compensate anyone for finding investors unless through a registered dealer. They are also capped at raising $3 million under this exemption and must adhere to strict reporting and advertising guidelines.
- This exemption lowers the barrier for entry for startups, enabling easier access to necessary funds which can help them scale rapidly and contribute to the local economy.
3. Ontario Instrument 45-509: Report of Distributions under the Self-Certified Investor Prospectus Exemption
- Aimed at issuers utilizing the Self-Certified Investor Prospectus Exemption, facilitating capital raising from investors who can independently assess and understand investment risks.
- This order simplifies the reporting requirements for issuers raising capital under the Self-Certified Investor Prospectus Exemption. Rather than the comprehensive reporting typically required, issuers can now utilize a streamlined, quarterly report without associated fees.
- The simplified reporting applies only to distributions reported under the specific Self-Certified Investor Prospectus Exemption and must adhere to the framework set by the OSC, which limits the scope to specific types of investors and transactions.
See: Videos by Canadian Securities Regulators on Capital Raising in Canada
- By reducing the complexity and frequency of required reporting, the OSC encourages more issuers to opt for this exemption, fostering greater investment opportunities and reducing administrative burdens on emerging businesses.
Leslie Byberg, Executive Vice President, Strategic Regulation:
“The OSC TestLab initiatives will provide important insights as we work to support access to finance at all stages of business growth. The data and information collected will help inform future policymaking, including promoting access to capital for early-stage businesses in Ontario while also ensuring investor protections.”
Conclusion
These interim class orders from the OSC are designed to reduce regulatory impediments and support innovative financing structures. Each order is crafted with specific features and limitations to ensure the balance between capital formation and investor protection. As these initiatives unfold, they are anticipated to help improve Ontario’s economic landscape by enabling more capital-raising pathways for early-stage businesses.
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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