Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Regtech, Compliance, Governance
Peirce: You Can Tokenize Securities but Not Skip the Rules
Tokenization | July 10, 2025
Image: Freepik
SEC’s Hester Peirce Confirms Tokenized Securities Are a Go but Must Still Comply With Rules
On July 9, 2025, U.S. Securities and Exchange Commissioner Hester Peirce (aka Crypto Mom) issued a clear statement about tokenized securities: "Tokenization may facilitate capital formation and enhance investors’ ability to use their assets as collateral" but they are still subject to existing securities laws.
See: SEC Issues Covered Stablecoin Statement, Risks Remain
Her comments are directed at companies using blockchain technology to issue or trade digital versions of financial instruments like stocks or bonds. Major U.S. firms such as Franklin Templeton, BlackRock, and Robinhood are already exploring tokenized fund structures and products.
Hester Perice, SEC Commissioner:
“Calling a token representing a security by a different name or moving it to a blockchain does not change its fundamental nature,"
“Tokenizing securities does not render them unrecognizable to our existing rule set. If you issue or trade a tokenized version of a stock or bond, you still must comply with the relevant rules.”
Her statement confirms that registration, disclosure, custody, and investor protection rules apply whether a security is paper-based or tokenized. As more and more firms turn to blockchain to modernize capital markets, the SEC is reminding them that the legal definitions of securities have not changed.
See: OSFI Drafting New Framework to Regulate Stablecoin Issuers
She highlights two categories of tokenized securities and in both cases full compliance is required: (1) those issued directly by a company and (2) those created by a third party based on an existing security.
She also cautioned that third-party tokenization can raise new risks, especially if the offering is misleading or undermines investor protections.
“A third party seeking to tokenize someone else’s security must ensure that such efforts are not misleading, do not violate the securities laws, and do not compromise investor protections.”
Why Tokenization Matters
Blockchain infrastructure can improve how markets operate. Tokenization allows for faster settlement, greater transparency, and lower administrative costs. It also enables fractional ownership, which can make investing more accessible. Restrictions can be built in and help enforce compliance automatically, some platforms may also offer 24/7 continuous trading access.
See: Coinbase Pushes for Tokenized Equities Approval
In Peirce’s view, innovation and regulation don't have to be in conflict:
“We should consider exemptions, no-action relief, or other tailored regulatory accommodations where the benefits of blockchain technology can be realized without undermining investor protections.”
Implications for Canadian Fintechs
The SEC’s position does not change Canadian law, but it provides useful direction for NCFA members and fintechs active in U.S. markets. In Canada, tokenized offerings must comply with securities rules. If a financial product is a security under Canadian law then it's subject to regulation.
Canadian fintechs exploring tokenization should expect scrutiny on custody, disclosures, and investor onboarding. Issuers must also ensure that the technology used does not obscure risk or circumvent investor rights. Regulatory engagement is key.
See: Coingecko 2024 Report: Investing in Tokenized RWAs
Peirce's statement shows that regulators are open to innovation but only if it maintains transparency and investor safeguards.
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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DPI Digital Finance Works. Why Is Canada Still Waiting?
Digital Finance Public Infrastructure Report | July 9, 2025
Image: Freepik/Rawpixel.com
Most Countries Have Adopted Digital Public Infrastructure. Where Does Canada Stand?
The Cambridge Centre for Alternative Finance (CCAF) just published a new report, "Digital Public Infrastructure (DPI) and Digital Financial Services" (69 page PDF) showing that 113 countries have adopted at least one DPI building block. Over half have adopted all three: digital identity, real-time payments, and consent-based data sharing. DPI is not just a policy trend. Countries with strong DPI systems result in much better financial inclusion outcomes. Canada, however, is still working on its foundational pieces.
What Is DPI and Why It Matters
According to the World Bank Group, DPI refers to digital systems like ID, payments, and data exchange platforms that support public and private services. These systems work best when they are (1) Interoperable, (2) Open for innovation, and (3) Designed for public benefit.
See: Will Competition Reforms Boost Fintech? Inside the Fight
According to the CCAF report, there are three core components of Digital Public Infrastructure:
- Digital Identity to prove who you are online and access services
- Real-Time Payments to send and receive money instantly
- Consent-Based Data Sharing to give users control over their financial data (aka, open banking/finance)
These systems help reduce fraud, speed up services, and lower costs for businesses and consumers. Most importantly, they help more people access the financial system.
DPI Adoption
The CCAF report shows clear adoption patterns with 113 jurisdictions having implemented at least one core DPI component, and 56 jurisdictions having adopted all three components. That includes countries with advanced economies and strong financial sectors, so they are relevant comparators for Canada such as:
- Australia
- Singapore
- Estonia
- Switzerland
See: Canada’s Productivity Depends on Intangible Tech Adoption
Other high-income countries, such as the United Kingdom and United States, are making progress but fall short of full DPI readiness due to gaps in national digital identity or regulated data sharing.
DPI Readiness - Canada vs Peer Jurisdictions
| Country | Digital Identity | Real-Time Payments | Consent-Based Data Sharing | Full DPI (All 3)? |
| Canada | ❌ No national ID | ❌ No live system | ❌ Proposed Consumer Driven Banking Act | ❌ |
| Australia | ✅ MyGov/MyID | ✅ NPP live | ✅ Consumer Data Right (CDR) | ✅ |
| Singapore | ✅ Singpass | ✅ PayNow | ✅ MAS APEX + open finance | ✅ |
| Estonia | ✅ e-ID/X-Road | ✅ SEPA Instant | ✅ Full integration | ✅ |
| Switzerland | ✅ e-ID live | ✅ SIC | ✅ I14Y platform | ✅ |
| UK | ❌ No national ID | ✅ FPS | ✅ Open Banking | ❌ |
| US | ❌ No national ID | ✅ FedNow | ❌ Market-driven only | ❌ |
How DPI Impacts Financial Inclusion
CCAF cross referenced data from the World Bank’s Global Findex to compare outcomes across countries. It grouped countries by how many DPI components they had in place.
See: Global Open Finance Lessons for Canada’s Rulebook
| Indicator | Countries with 1 DPI component | Countries with 3 components |
| Own a debit or credit card | 25% | 77% |
| Use digital payments | 45% | 83% |
| Borrow from formal institutions | 15% | 38% |
| Receive government transfers | 14% | 28% |
| Say lack of ID prevents account access | 19% | 7% |
| Find it very difficult to raise emergency funds | 34% | 19% |
The data-driven and outcome message is clear. More DPI means better access to financial tools and stronger financial resilience.
Where Canada Stands on DPI
According to the CCAF’s global DPI landscape, Canada is in the exploratory or early development stage across all three DPI pillars. Each area has seen policy activity, but none are fully operational, which NCFA agrees.
- Real-Time Payments - led by Payments Canada, Canada’s Real-Time Rail (RTR) initiative has faced repeated delays. As of July 2025, there is no real-time payment system available to the public.
- Digital Identity - While Canada has launched federal digital credentials pilots, Canada does not yet have a nationwide, interoperable digital identity framework. Adoption is fragmented.
See: The Crisis Canada and Fintech Can’t Afford to Waste
- Consent-Based Data Sharing - The proposed Consumer-Driven Banking Act, announced in 2023, outlines a path toward open banking. However, no implementation timeline has been met, and no system is in place. The Financial Consumer Agency of Canada has been named as the lead regulator.
“Planning status indicates that foundational DPI systems are under discussion or development but are not yet implemented at scale in a way that enables key financial use cases.”
Benefits of DPIs for Canadians
DPI is more than just government infrastructure. The report highlights that public-private partnerships are key to scaling systems that reduce onboarding costs, improve access to credit, and allow fintechs to innovate securely. Countries with strong DPI frameworks offer:
See: How Fintechs Are Tackling Financial Inclusion in Canada
- Faster user verification through eKYC
- Lower costs for payments and data services
- Stronger consumer protections tied to consent
Call to Action
It’s time for Canada to take action and build. No more delays. We cannot expect to maintain our quality of life or Canada’s global economic position without bold steps forward. Digital public infrastructure is no longer optional. It's foundational and without DPI, Canada’s fintech sector remains limited in how it can compete, scale, or serve excluded groups.
Moving from strategy to execution is the only way to close the gap. Without it, the country risks falling further behind. It is a public good that lifts access, speeds services, and builds trust. Countries that move fast, collaborate across regulators, industry, and communities are seeing real results. Canada has the policy tools, the tech capacity, and the industry support to do the same. But time is running out to catch up.
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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BC Backs VR and Gaming Studios With Tax Credit Boost
BC Fintech Tax Credit | July 8, 2025
Image: Freepik
BC Government Increases Digital Media Tax Credit to 25% Permanently
British Columbia is making perman Interactive Digital Media Tax Credit (IDMTC) and raising the rate to 25%, effective September 1, 2025. The expanded credit applies to qualified salaries and wages for the development of video games, virtual reality (VR) applications, educational software and simulators.
The IDMTC was first introduced in 2010. The 25% rate was recently put on the table as a temporary increase under Budget 2025 which is now being made permanent. It replaces the earlier 17.5% baseline rate and is aimed at helping creators retain staff, attract capital, and grow jobs in the province’s interactive digital media sector. According to CreativeBC, the industry contributes over $1 billion to provincial GDP and supports over 20,000 jobs.
David Eby, BC Premier, said that it will boost long term investment:
“This tax credit will help game developers hire, attract new investment and keep building some of the best games in the world.”
See: Fintech Grows 3x Faster, 97% of Market Still Untapped
Brenda Bailey, Finance Minister and former game developer, emphasized the impact on both indie and enterprise studios:
“Whether they are a software engineer at a VR developer or an artist at an independent game studio, we stand by our developers.”
The province also announced:
- Additional $30 million CAD investment in its Integrated Marketplace Initiative, designed to help BC companies pilot and scale new tech products
- Raised the venture capital tax credit limit to $300,000 per investor per year to attract more early stage capital
There are currently 161 video game companies and 230 immersive tech firms operating in BC, many of them with fewer than 10 employees. Global developers with a presence in the province include Microsoft, Nintendo, EA, Take-Two, and CD Projekt Red.
Why This Matters
This permanent tax credit increase will strengthen the planning outlook for studios, venture funds, and fintechs financing interactive media. Companies using revenue-based financing or IP-backed lending models now will be operating in a more stable tax environment.
See: U.S. Tax Bill Could Drive Capital Back to Canada
Investors and lenders can model developer cash flow with improved accuracy, especially for VR and immersive media startups that operate on tight burn rates. For full details, visit the official IDMTC program page.
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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Bridging Canada’s Advice Gap with Global Insights
Financial Advice | July 8, 2025
Image: Freepik/rawpixel.com
The UK is Enabling New Financial Advice Models. Should Canada Act Too?
In the UK, the Financial Conduct Authority (FCA) has proposed a new approach to tackle the issue of improving access to financial advice, so people can make informed investment decisions. The FCA is calling this a 'once in a generation' reform that would let firms provide targeted and simplified financial advice to underserved populations without the regulatory burden of full-service advisory. Should Canada be exploring a similar path?
On June 29, 2025, the FCA released a consultation in effort to alter how financial guidance is delivered. According to the regulator, only 9% of UK adults received regulated advice in 2024. At the same time, over 7 million people are holding more than £10,000 in cash without investing it. The proposed rules include two core categories:
- Targeted support would allow firms to provide grouped financial nudges based on shared characteristics, such as young adults holding idle savings or retirees at risk of over-drawing retirement accounts. This type of guidance could be delivered digitally without full fact-finding.
- Simplified advice would allow firms to offer limited product recommendations to individual clients without conducting full suitability assessments currently required. These rules are intended to reduce compliance costs and encourage firms to serve every day clients.
See: Where the Gaps Are: Fintech Insights from FCA Data
The FCA expects around 100 firms to offer services under these reforms by April 2026. The proposal aims to support better outcomes for consumers while still protecting investors.
Canada’s Investment Advice Landscape
In Canada, regulated investment advice is tightly controlled. Firms offering investment recommendations must be registered with a provincial securities regulator and meet strict know-your-client (KYC) and suitability obligations. This approach is critical for investor protection but it creates high cost and operational barriers for reaching clients with modest portfolios.
The FCAC’s National Financial Literacy Strategy 2021–2026 emphasizes its mandate to enhance Canadians’ financial knowledge and resilience, but efforts so far rely heavily on education, tools, and public awareness. The CSA’s Investor Education Committee has launched social campaigns, investor alerts, and literacy tools to empower Canadians to make informed financial decisions.
According to CSA research, more than 40% report low confidence in their investment knowledge. Findings show a decline in advisor use (down to 61%), while DIY attitudes rise (45% have self-directed accounts), raising concerns about whether Canadians have sufficient knowledge and confidence to manage investments on their own.
Robo-advisors and the Evolving Opportunity
Canada’s robo-advisor market is expanding swiftly. Wealthsimple alone manages over $70 billion CAD (as of June 2025), Questrade’s Questwealth holds $30 billion CAD (early 2020), and even more growth is expected as digital investing gains traction, with services increasingly adopted by younger investors. These platforms offer digital-first, affordable investment tools, but remain constrained by current regulatory expectations.
See: Report Insights: DIY Investors in Canada on the Rise
By contrast, the FCA's framework could allow robo-advisors to deliver access to simpler advice or proactive guidance based on behavioural data. These changes have the potential to increase access while reducing costs, without compromising key investor protections. In Canada, any comparable flexibility would require regulatory change.
Finfluencers and Informal Advice
Another growing channel for financial guidance is social media. In Canada, 82% of Gen Z investors report following influencers for financial tips, and 44% believe online advice is as useful as traditional advisors. While some content is educational, the Ontario Securities Commission and Alberta Securities Commission have raised concerns about unregistered finfluencers promoting securities without appropriate disclosures.
If Canada created space for fintechs and advisors to offer low-cost, regulated advice digitally, it could reduce dependence on informal and sometimes misleading content. The FCA’s 'once in a lifetime' reforms aim to do just that, offering a model Canada could adapt to fit our regulatory landscape.
Outlook
Canada’s fintech innovators are capable of building trusted, scalable tools to help close the advice gap. But changes to regulatory structures need to happen to support new delivery models. The FCA’s targeted support and simplified advice categories are a good benchmark and approach. Canadian regulators and policy makers should be exploring how to safely expand access to financial guidance that is compliant, cost-effective, and in the public interest.
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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Globalive Completes WealthONE Bank Acquisition
M&A | July 7, 2025
Imgae: Freepik
Canada’s First Fintech-led Takeover of a Schedule I Bank Marks a Change in Ownership Policy
The acquisition of WealthONE Bank of Canada by Globalive and its Canadian investment partners has officially closed, following federal government approval on June 18, 2025. Establishing a precedent, it's the first time a non-bank, fintech-aligned private investor group has successfully taken control of a Schedule I chartered bank in Canada.
See: Ripple Seeks US Bank Charter for Stablecoin Expansion
The deal follows a two-year national security review under the Investment Canada Act, which required WealthONE’s former owners to divest due to foreign influence concerns. WealthONE had previously faced scrutiny over ties to China-based investors, prompting a 2023 directive from Ottawa to restructure ownership.
Key Deal Terms, Ownership and Timeline
Globallive led by Anthony Lacavera (telcom and fintech entrepreneur) now owns 65% of WealthONE’s equity. The remaining 35% is held by a group of Canadian investors whose names have not been disclosed publicly. According to Bloomberg, the full acquisition was valued at approximately $58 million CAD, and covers all issued and outstanding shares of WealthONE and includes a commitment by the buyers to inject new capital to support the bank’s next phase of growth.
- 2023: Government of Canada orders WealthONE’s former owners to divest due to national security concerns
- April 2024: Globalive enters formal agreement to acquire WealthONE
- June 18, 2025: Deal receives official federal approval
- July 7, 2025: Acquisition is finalized and announced publicly
The transaction was reviewed by multiple federal departments and found to meet requirements for Canadian control, transparency, and risk mitigation. Worth noting that the Competition Bureau previously cleared the acquisition in advance of the final approval.
See: Open Banking Delayed But Back in the Legislative Radar
WealthONE will continue to operate independently under its current federal Schedule I charter. Its current CEO, Paul Leonard, will remain in place and work with Globalive to expand products and reach more customers in underserved market segments.
Business Focus and Strategic Expansion
WealthONE was founded in 2016 and currently manages approximately $516 million CAD in assets. The bank focuses on customers often excluded from traditional financial institutions, including newcomers, immigrants, self-employed professionals, and small business owners.
In the months leading up to the acquisition, WealthONE introduced a cloud-based digital onboarding platform that supports accounts such as TFSAs, GICs, and high-interest savings.
According to AINVEST, Globalive intends to scale WealthONE’s operations to reach between $750 -$800 million CAD in assets by streamlining operations, modern digital services, and lean risk-adjusted lending models.
Implications for Canada’s Fintech and Banking Sector
Globalive's acquisition of WealthONE demonstrates how new non-bank players can enter Canada’s banking system. Instead of applying for a new banking license, fintechs and private investors now have a verified path of entering the market via acquisition of existing chartered institutions. The WealthONE deal sets precedent that private capital can take control of federally regulated banks (as long as there aren't any national security concerns).
See: RBC and Cohere Partner on ‘North for Banking’ AI Platform
For fintech founders, challenger banks, and digital lenders, it creates an opportunity to scale into deposit-taking and lending under an existing charter, without having to go through the arduous process of applying for a new banking license which will likely take a minimum of 5 years, just ask Santander.
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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Ripple Seeks US Bank Charter for Stablecoin Expansion
Crypto Banking | July 7, 2025
Ripple Moves to Become a Federally Regulated Bank to Expand its Payments and Custody Business
Ripple has officially applied for a national bank charter from the US Office of the Comptroller of the Currency (OCC). The company is also seeking a Federal Reserve master account to support direct access to US payment rails.
See: Grayscale ETF Wins SEC Approval for 5 Crypto Assets
CEO Brad Garlinghouse confirmed the news on X:
True to our long-standing compliance roots, @Ripple is applying for a national bank charter from the OCC. If approved, we would have both state (via NYDFS) and federal oversight, a new (and unique!) benchmark for trust in the stablecoin market.
Earlier in the week via… https://t.co/IdiR7x3eWZ
— Brad Garlinghouse (@bgarlinghouse) July 2, 2025
Ripple Wants to Settle Payments Directly With the Fed
If approved, Ripple would bypass correspondent banks by settling payments directly with the Fed and holding dollar reserves without intermediaries. This is designed to support Ripple’s push to offer a compliant, enterprise-grade stablecoin and accelerate global payments. These objectives align with new federal rules proposed under the GENIUS Act, which sets clear reserve and disclosure standards for stablecoin issuers.
Ripple’s approach mirrors that of Anchorage Digital and Circle, which operate under national trust bank charters regulated by the OCC. Ripple may use its regulated subsidiary, Standard Custody & Trust, to separate digital asset exposure from its core balance sheet. This structure could help the firm meet Basel III capital requirements by keeping volatile assets like XRP off its banking books.
Following the announcement, XRP surged above $2.28 as trading volume spiked. Analysts said the rally was driven by rising confidence that Ripple’s regulatory strategy will boost its long-term institutional credibility.
Why This Matters for Fintech and Regulation
If Ripple is granted the charter and Fed account, it will become one of the few crypto-native firms operating fully within the traditional banking system. It's a significant and growing trend among major fintechs like Circle, Wise, and others seeking deeper integration with regulated payment rails. For Canadian fintechs and regulators, Ripple’s move could accelerate the need to clarify stablecoin policy, custody standards, and access to domestic settlement infrastructure. Regulatory certainty is a competitive advantage today and quickly becoming the norm.
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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Grayscale ETF Wins SEC Approval for 5 Crypto Assets
Crypto | July 2, 2025
SEC Approves Grayscale ETF With Five Major Crypto Assets, Signalling Broader Regulatory Path for Multi-Asset Funds
On June 27, 2025, the U.S. Securities and Exchange Commission (SEC) officially approved the conversion of Grayscale’s Digital Large Cap Fund (GDLC) into a spot exchange traded fund (ETF). The fund is now listed on NYSE Arca, offering investors access to five major crypto assets in one regulated product. It's the first time that a U.S. spot ETF includes not just Bitcoin and Ethereum but also Solana, XRP and Cardano, establishing a new precedent for how diversified crypto products can be structured and approved under SEC oversight.
What the ETF Holds
The Grayscale Digital Large Cap ETF largely follows the CoinDesk Large Cap Select Index, which rebalances monthly. As of July 1, 2025, the fund holds:
- 80.2% Bitcoin (BTC)
- 10.4% Ethereum (ETH)
- 4.4% XRP
- 3.0% Solana (SOL)
- 1.9% Cardano (ADA)
GDLC now offers direct access to these assets through a public listing.
What Changed
Prior to this approval, GDLC operated as a closed-end trust on OTC markets. It lacked daily liquidity and tradeed at a discount or premium to the fund’s net asset value. The new ETF lets large investors swap crypto directly for shares in the fund, and vice versa, which helps align market prices with the actual value of the crypto held.
See: SEC Advances XRP ETF Review, Investors Await Decision
Grayscale completed the conversion of approx $775 million USD in assets by the SEC’s July 2 compliance deadline, making the ETF now the largest multi-crypto fund of its kind in the United States.
Implications of the SEC's Approval
This is the first time U.S. investors can now access a range of large-cap crypto assets, beyond just Bitcoin and Ethereum, through a regulated spot ETF. It reduces the need to manage separate holdings or rely on offshore exchanges.
Analysts now estimate a 95% likelihood that ETFs for XRP, Solana, and Litecoin will be approved in the U.S. later this year. Major firms including Bitwise and Franklin Templeton have already submitted filings.
This approval reinforces legal and regulatory precedent and build's on Grayscale’s 2023 legal victory, which challenged the agency’s rejection of a Bitcoin ETF. That ruling continues to impact how the SEC responds to ETF applications. It also highlights the SEC's evolving policy on crypto including assets that were previously under regulatory scrutiny such as XRP. The SEC is now clearly willing to consider broader crypto exposure in compliant funds, even while legal classification questions remain up in the air.
See: SEC Clears Crypto Staking. What It Means for Canada
The door to broader index-based crypto products is likely to follow, such as new ETFs tied to crypto indices, sector themes, and/or platform categories. See NCFA’s article on the crypto ETF battle intensifying with XRP, Solana, and Dogecoin.
Canadian Lens
Canada continues to lead with crypto ETF adoption. The Purpose XRP ETF launched on the TSX on June 18, 2025, while Canadian investors already have access to ETFs for Bitcoin, Ethereum, and Solana. See also NCFA’s report on Canada’s first Solana spot ETF with staking.
For Canadian fintechs and investors, growing alignment in North American regulation signals an opportunity to expand services built around compliant digital asset products. As U.S. markets open up to a wider mix of crypto ETFs, Canadian firms offering custody, compliance, or portfolio tools will be well positioned to support cross-border demand and deepen product innovation.
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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