Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Venture Funding and Building
Tether Invests In Ledn To Expand Crypto Credit Access
Financing | December 12, 2025
Image: Freepik/rawpixel.com
A Strategic Deal Linking Digital Dollars With Collateral-based Credit
On November 18 2025 Toronto founded fintech Ledn announced that Tether made a strategic investment in the company. Tether operates the largest stablecoin in the world and Ledn built a lending model that gives people access to credit without selling their bitcoin. The deal connects fast moving digital dollars with a digital asset collateral approach that long term holders already use. It also comes at a time when stablecoins support a growing share of global payments and when demand for simple credit continues to rise.
FT Partners advised the Ledn-Tether transaction, as noted in the transaction overview outlining Ledn's lending history and market reach, facilitating more than $10 billion in loan originations across more than 100 countries. The company uses fully custodied collateral and publishes ongoing Proof of Reserve reports. Tether gains a lender with a clear and established structure. Ledn gains a partner with global reach.
See: Ep20-Jan 11: Bitcoin Backed Loans and 2x Credit – Putting Your Crypto to Work
Adam & Mauricio, Ledn Co-Founders:
"This is a pivotal moment for Ledn. This strategic partnership is an affirmation of the disciplined, client-first approach we have championed for years. We are laser-focused on continuing to help our clients succeed on their bitcoin journey. This investment is perfectly aligned to allow us to do exactly that, providing an even better service at an even greater scale."
Why Stablecoins And Credit Are Converging
CoinGecko's stablecoin tracking shows that major stablecoins such as USDT and USDC post large 24 hour trading volumes and together account for significant market value and activity with the total stablecoin marketcap currently at $314 billion. This reflects widespread use of stablecoins for transfers, payments, and liquidity across crypto markets.
People use them for payments and savings because they move faster than many traditional banking channels and remain easy to access. Global crypto ownership reached about 708 million people by the first half of 2025, according to Crypto.com’s Crypto Market Sizing H1 2025 report. Many of these users live in places where access to stable dollars is limited. For them a digital dollar that moves quickly is practical, not speculative.
A growing share of institutional credit now uses tokenized structures on blockchain. For example, Figure launched Democratized Prime, a platform that lets institutional and retail users lend and borrow with tokenized collateral, and the firm also received SEC approval for its public yield stablecoin YLDS. These developments show how credit activity is moving on chain in regulated settings, and point to a broader move toward collateral based lending with digital assets.
See: Crypto Meets Wall Street as SEC Approves Yield Stablecoin
People with long term bitcoin holdings often prefer to borrow against their assets instead of selling. Bitcoin’s liquidity and defined collateral make this possible. Ledn scaled its lending model to meet this demand and has originated more than $10 billion in loans worldwide.
Tether’s stablecoins function as the funding that makes these loans usable. When you put the two together, you get a streamlined simple structure with bitcoin as collateral and stablecoins as the way money moves. It's a setup that reflects how people already operate.
Canadian Angle
Ledn began in Toronto but moved its operations abroad to work under a clear rule set. The company received approval through the Cayman Islands VASP regime, which provides defined expectations for custody and disclosure.
Of course, the situation raises a direct question for Canada. If a successful Canadian founded fintech leaves the country to grow, what does that mean for Canada’s position in digital finance and ability to compete globally?
Canada has taken a step toward addressing this gap by publishing the first draft of the Stablecoin Act. The draft proposes federal rules for fiat backed stablecoin issuers, including requirements for reserve assets, redemption rights, disclosures, and oversight by the Bank of Canada.
Read: CSA Reminds Crypto-backed Lenders of Securities Law Duties
Clear rules matter because stablecoins now support real financial activity, not just trading. If Canada builds a workable framework, it could help local fintechs serve users who rely on digital dollars and collateral based credit without leaving the country to find clarity.
Conclusion
People want access to dollars that move quickly. They want credit without losing long term exposure. They want clear custody and simple structures they can understand. Ledn has shown that this model works at scale. Tether brings liquidity and distribution.
The deal shows how stablecoins and bitcoin backed credit are becoming part of everyday financial activity and gives Canada a reason to consider how its policy choices are impacting the growth of fintech in Canada.
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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How RESP Providers Support Families During Economic Uncertainty
December 11, 2025
Photo courtesy of Unsplash/Sigmund
Education costs in Canada have been steadily rising over the past decade. Tuition, textbooks, housing, and living expenses can add up to tens of thousands of dollars per year. For many families, especially those facing economic uncertainty, planning for post-secondary education can feel overwhelming. Registered Education Savings Plans (RESPs) remain one of the most practical tools to help manage these costs and provide structured savings over time. This article breaks down how they can help families prepare for the costs that come with higher education.
How Economic Factors Affect Education Planning
Inflation affects the cost of living in Canada, and post-secondary expenses are no exception. Families may find themselves paying more for tuition, housing, and daily expenses than originally expected. Unforeseen events, such as a job change, illness, or global economic shifts, can make it difficult to contribute consistently to savings. Even modest, consistent contributions can make a significant difference over a decade or more.
Government Incentives That Support RESP Growth
Canadian families also benefit from government contributions. The Canada Education Savings Grant (CESG) provides 20% on annual contributions, up to $500 per child each year, with a lifetime maximum of $7,200. Lower-income families may qualify for the Canada Learning Bond, which adds extra funds even if the family cannot contribute much initially.
These programs help families stretch their savings further. Using a structured RESP plan can ensure these grants are maximized, supporting financial stability even during uncertain economic periods.
The Role of RESP Providers in Financial Planning
RESP providers like CST RESP offer tools and guidance to help families manage their contributions effectively. They can assist with understanding how much to save, when to withdraw funds, and how to maximize government grants.
This can be a great opportunity for many families, since the plan emphasizes structured, flexible contributions that adapt to changing circumstances. This does not mean the plan guarantees higher returns or removes risk, but it helps families stay organized and take advantage of available government incentives.
This structure is particularly useful when the economy is unstable. Families can keep saving toward education without having to make frequent, stressful financial decisions. A structured RESP can provide peace of mind in several ways:
- Establishing automatic contributions ensures regular savings without relying on memory or manual deposits.
- Clear records of grants and growth help families understand their progress.
- Flexibility in adjusting contributions allows households to scale savings up or down depending on income.
Practical Guidance for Families During Uncertain Times
Even families without extensive experience in financial planning can take steps to strengthen their RESP strategy. Start by setting realistic contribution goals that match your monthly or yearly budget. Consistency is more important than large one-time deposits, and even modest contributions add up over time.
It is also essential to diligently track government grants. Ensure that the Canada Education Savings Grant (CESG) and Canada Learning Bond (CLB) contributions are applied each year correctly. Keeping an eye on these funds ensures that your family benefits fully from available government support.
Reviewing your RESP plan at least once a year can help you adjust contributions when income changes or education costs rise. A small increase or decrease in contributions can make a significant difference over time and keep your plan aligned with your family’s current financial situation.
See: OSC $30K Research Grants for Ontario’s Capital Markets
Finally, maintain open communication with your RESP provider. Asking questions about contribution timing, withdrawals, or grant eligibility can prevent mistakes and make sure your plan remains on track. A competent provider will be more than happy to clarify procedures and offer guidance without making the process feel overwhelming.
Endnote
Planning for post-secondary education can feel overwhelming, especially during uncertain economic times. By consistently contributing to an RESP, tracking government grants, reviewing plans regularly, and maintaining open communication with a trusted provider, families can stay on track. These steps help ensure children’s education remains a priority while giving parents confidence that their savings are working effectively.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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$7.5 Billion Microsoft AI Buildout In Canada
December 10, 2025
Image: Freepik/DC Studio
Microsoft Expands AI Investment As Canada Prepares Sovereignty Rules for 2026
On December 9 2025, Microsoft Canada announced, 'the most important commitment in Microsoft Canada's history" or a total of $19 billion CAD to be invested into artificial intelligence (AI), including more than $7.5 billion CAD in the next two years inside Canada Central near Toronto and Canada East in Quebec. This anchors Canada inside Microsoft’s global AI buildout at a scale the country has never seen, one not of a secondary cloud market but as a strategic production region where infrastructure, talent and sovereignty all matter.
New capacity begins coming online in the second half of 2026. Microsoft aligned the buildout with a five point digital sovereignty plan for Canada that includes a (1) Threat Intelligence Hub in Ottawa, (2) confidential computing, (3) expanded data residency, (4) sovereign landing zones for AI deployment and (5) contractual protections designed to keep Canadian customer data under Canadian legal authority.
See: Canada Risks Falling Behind as UK Lands AI Megadeals
For Canada’s innovation economy, it accelerates product velocity for companies that rely on domestic compute, it may also impact how investors evaluate technical risk and strengthens (or weakens) Canada’s bargaining position at a time when the country is rewriting its AI and Buy Canadian strategies. It also raises a wider question: if Microsoft is prepared to make a commitment at this scale, what might other global AI giants like Google now offer Canada, and what terms should Canada set to ensure digital sovereignty instead of deepening dependence?
Canada Building a New AI Strategy for 2026
The federal government launched an AI Strategy Task Force and consultation in September 2025 to define the next national AI strategy. This consultation covers research, compute, governance, commercialization and public sector adoption. Also, Budget 2025 outlines a sovereign AI compute plan that includes a Sovereign Canadian Cloud and large scale public infrastructure investments, including $925.6 million commitment over five years.
AI Minister Evan Solomon recently spoke at a 111 event indicating that the feds are considering buy Canadian AI strategies to launch in 2026, linking federal funding and procurement to domestic infrastructure and model options.
The timing of Microsoft's investment may be linked to the federal government's buy Canadian strategy push, which gives policymakers a bit of leverage. Regardless with the new investment, Canada can now write a strategy that strengthens domestic options instead of reinforcing long term dependence on external providers without their long term commitment.
See: CEO Exits as GitHub Absorbed into Microsoft’s CoreAI
While Microsoft’s expansion strengthens Azure Canada Central and Canada East, with new capacity starting in 2026, it's important to point out that more compute doesn't eliminate all constraints. Provinces decide how quickly companies can expand existing datacentres because they control power availability, grid upgrades and the local approvals needed to support more energy use. Newfoundland utility as an example shows how provincial decisions can limit digital infrastructure growth, as it recently decided not to provide additional power to Blockchain Labrador Corporation. Ottawa can design rules for sovereign compute, but delivery depends on power systems and local permitting in Ontario, Quebec and any province that hosts future datacentres.
Sovereignty Debate Around AI Expansion
Digital sovereignty concerns were well established before Microsoft’s announcement. CIGI’s analysis of Canada’s digital dependence warns that foreign controlled cloud and platform infrastructure creates structural exposure across data, security, competition and resilience. Open Media outlined similar risks in an open letter on digital sovereignty to Prime Minister Carney that calls for domestic control over digital infrastructure and cautions against deepening dependence on foreign platform operators. The Broadbent Institute’s digital sovereignty briefing highlights how Canada’s information infrastructure is dominated by United States firms and stresses the importance of Canadian control over critical digital systems. NCFA added a fintech and digital identity angle in its Digital Public Infrastructure red flags analysis, providing a real case how outsourcing identity and authentication layers can narrow competitive space and weaken democratic oversight.
Microsoft’s announcement responds to these pressures with it's 5 point sovereignty plan for Canada which includes data residency commitments, confidential computing, in country processing for Copilot interactions, sovereign landing zones and a Threat Intelligence Hub in Ottawa.
See: Bezos Co-Leads New Project Prometheus AI Venture
The sovereignty debate is no longer theoretical. It is now a negotiation between public strategy, foreign capital, regulatory expectations and domestic ecosystem needs.
Strategic Implications
Microsoft’s investment changes how Canadian teams get the compute they need and how they plan products that must work inside regulated markets. With this level of commitment, Canada gains more domestic compute capacity and better tools to support sovereignty goals, but this infrastructure still sits inside foreign owned systems. The real impact is that Canadian teams now have a clearer path to scale at home while policymakers work to ensure these services strengthen, rather than weaken, Canada’s digital sovereignty.
For founders and investors, this creates room to build products that rely on local residency, stronger governance and efficient reasoning models suitable for regulated markets. Banks, fintechs, insurers and public institutions increasingly expect AI systems that can be audited and explained. Founders who anchor their products in these expectations will move faster across procurement and face fewer barriers in international markets that value trust and oversight. Companies that design for portability, auditability and resilience will avoid dependency traps and scale on terms that align with Canada’s sovereignty goals.
Public reporting shows that Microsoft is partnering with Cohere to offer its AI models on Azure, giving firms access to a domestic model supplier with global reach.
Canada now has conditions to build globally competitive AI companies that remain Canadian-controlled but the challenge is execution, governance and choosing business models that turn this new leverage into lasting advantage rather than repeating old patterns of dependence.
Why It Matters
Microsoft’s investment places Canada inside a global race where compute, data control and strategic partnerships now determine who leads the next decade of AI. Canada’s advantage won't come from capacity alone, but from how Canada uses the moment to set clear rules for trustworthy AI, support efficient model development and give Canadian companies a stable foundation to scale without leaving the country for infrastructure or capital.
Read: How Fintechs Can Build Enterprise AI Agents with Cohere
The next step is about deciding what Canada expects from any global partner. If Microsoft is prepared to invest at this scale, other AI giants may come forward with their own proposals. Canada’s job is to ensure that any future deal strengthens domestic capability, expands Canadian control over critical technology and avoids locking in long term partnerships that limit competitiveness across sectors.
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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MetaMask Adds Polymarket to Its Self Custody Wallet
Crypto | December 9, 2025
Image generated by AI
Prediction Markets Inside Mainstream Self-custody Wallet
On December 4 2025, MetaMask expanded its self custody wallet by adding Polymarket prediction access to over 30 million monthly active users, enabling instant reach and impact across a vast user base. MetaMask wants to serve as a financial gateway where users form views on news and markets while maintaining full control of their digital assets.
The company already expanded into derivatives through a partnership with Hyperliquid in early October, and aims to centralize trading, rewards and identity inside its self-custody interface. The company also confirmed plans to launch a token that will connect activity across features.
What Polymarket Adds To MetaMask
Polymarket brings user growth, event liquidity and cultural relevance into MetaMask.
Coincentral reported that Polymarket's October 2025 trading volume was $3.02 billion with 477,850 monthly active traders, and 38,270 Polymarket event markets were created the same month (quickly growing demand for detailed, news-driven event prediction markets.
This growth is paired with scrutiny. A Columbia University study found that about 25% of Polymarket’s historical trading volume may involve wash trading, with peak periods where nearly 60% of weekly trades in December 2024 showed characteristics of wash activity and clusters of about 43,000 wallets linked to suspected wash networks.
See: TradingView and MetaTrader4: Recipe for Success?
Polymarket’s growing institutional interest must be recognized. Intercontinental Exchange announced that it would invest up to $2 billion in Polymarket at an $8 billion valuation and distribute its data through the ICE ecosystem. This deal places prediction markets inside the realms of one of the most established global financial groups, and likely why MetMask chose Polymarket.
Regulatory Fault Lines Around Prediction Markets
Prediction markets still remain one of the more fragmented regulatory categories in global finance. Polymarket’s regulatory pathway in the United States shows how quickly oversight can move from pressure to approval. In 2022, the Commodity Futures Trading Commission (CFTC) fined Polymarket $1.4 million for operating without proper registration and required it to block US users.
In November 2024, NCFA reported that federal agents searched the New York home of Polymarket chief executive Shayne Coplan and seized his phone and other devices after an election prediction market drew national attention. The company described the event as politically motivated, though no public evidence confirmed that claim.
In mid-2025, Polymarket acquired QCEX for $112 million, a CFTC regulated and licensed derivatives exchange, seeking approval to relaunch in the US. Soon after the deal closed, the CFTC issued a no action letter that relaxed several reporting and recordkeeping requirements tied to event contracts. Together, these steps cleared the way for Polymarket to return to the US market for the first time in three years.
Ontario regulators ruled that Polymarket’s earlier model offered short-maturity binary options to Ontario users in breach of the province’s ban, outlined in the OSC’s settlement with Polymarket, and formalized through the tribunal’s decision approving the enforcement agreement.
Across Europe, the sector sees similar barriers. Belgium added Polymarket to its blacklist as an illegal gambling service. Romania blocked access to Polymarket over election betting after a surge in election markets. Poland placed Polymarket.com on its register of illegal gambling domains.
For MetaMask, it means that access to its prediction markets is still limited in some regions.
Outlook
Instead of sending users to third-party apps, MetaMask is funnelling activity inward and rewarding it, as a competitive advantage. Certainly interesting to see a self-custody platform evolve to become a wider financial interface. Investors should watch the competitive race between Kalshi and Polymarket. A rivalry that will influence pricing efficiency, liquidity and retail adoption, especially as MetaMask becomes a distribution channel.
See: NHL Bets on Fintech’s Future with Kalshi and Polymarket
The Columbia study and the OSC decisions show increasing scrutiny. As these markets move inside mainstream wallets, regulators may demand new disclosures, limits and reporting standards. Policymakers will need to address how prediction markets intersect gambling laws, derivatives rules and securities oversight.
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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How Canadians Can Protect Their Wealth During Market Downturns Using Tax Strategy
December 9, 2025
Image: Freepik/rawpixel.com
Market volatility is unsettling when your retirement plans, investment portfolios, and business growth depend on stability. But there is a silver lining to market downturns: tax strategy is one of the few tools Canadians can actively control. Proper planning softens losses and positions wealth to recover faster and potentially grow when markets rebound.
Capital Loss Planning That Works for You
When investments fall below their adjusted cost base, strategic selling can unlock capital losses. These losses are not wasted. They can be used to offset capital gains realized in the year or carried back three years to recover taxes already paid. If gains are scarce in a tax year, unused losses can carry forward indefinitely. The timing matters, though. Superficial loss rules prevent claiming a loss when a substantially identical investment is repurchased within 30 days in affiliated accounts. Canadians who want to maintain exposure often turn to alternative holdings that provide similar market exposure without triggering compliance problems.
Thoughtful loss harvesting can also enhance portfolio rebalancing. Crystallizing losses during downturns allows investors to re-enter positions with a cleaner tax slate once the market recovers, turning an otherwise painful decline into a strategic asset.
Using Professional Advice to Make Tax Law Work for You
Most Canadians benefit from expert guidance at this stage. Market downturns interact with tax laws in ways that are not always intuitive, and navigating capital losses, superficial loss rules, and timing strategies requires strict adherence to tax laws. Guidance from the finance and investing tax lawyers at TaxLawyer.com provides the legal and structural clarity you need to make these moves confidently, especially for higher net worth individuals, incorporated professionals, and multi-asset investors.
Income Splitting and Pension Planning During Volatility
Downmarkets often shift household income levels, which creates planning opportunities. Spousal RRSPs, pension income splitting for retirees, and prescribed rate loans to family members can reduce tax burdens when incomes are uneven. Lower-income years allow individuals to withdraw from registered accounts, intentionally triggering taxable income at favourable rates. This strategy can prevent future tax burdens when both market performance and account values recover.
Meanwhile, dividend income generated in a spouse’s lower tax bracket preserves cash flow, provides flexibility during downturns, and improves overall household tax efficiency. Even modest reallocation between spouses can significantly change the after-tax outcome over time.
RRSP, FHSA, and TFSA Contributions Still Matter
A downturn magnifies the value of tax-advantaged accounts. RRSP contributions generate deductions now, deferring tax until retirement, when many Canadians expect to be in a lower bracket. TFSAs, however, offer permanent tax-free growth that shines in volatile markets. Reinvesting within a TFSA after markets decline allows any recovery to occur shielded from taxation.
Canadians planning for a first home should consider the First Home Savings Account. Even in weak housing or investment markets, FHSA contributions provide deduction benefits similar to RRSPs, while later withdrawals can be tax-free when used for a qualifying home purchase. The compounding effect of contributing during a downturn can accelerate future purchasing power.
Corporate Structures, Passive Income, and Loss Utilization
For incorporated business owners, downturns generate planning windows that rarely exist in expansion periods. Lower business values can make estate freezes more tax efficient, transferring future growth to the next generation at today’s depressed valuations. Corporate reorganization can also be more favourable when passive income streams dip below thresholds that normally reduce the small business deduction.
Losses at the corporate level can carry back or carry forward to reduce taxes in profitable years. Strategic alignment between corporate and personal tax planning allows owners to weather downturns while positioning their businesses for a faster recovery.
Charitable Giving and Philanthropy as Strategic Moves
Donating publicly traded securities with unrealized gains remains one of the most effective strategies. Even in volatile markets, this eliminates capital gains tax while generating donation credits that reduce personal or corporate tax.
See: How Much Economic Freedom Canada Needs To Compete
For investors with charitable goals, downturns present an opportunity to reset holdings while achieving philanthropic objectives.
Turning Uncertainty into Control
Market downturns are intimidating, but they rarely last forever. Tax planning transforms uncertainty into a toolkit for resilience. Smart strategy does not stop the storm, but it helps to ensure that you are better positioned to thrive once calmer conditions return.
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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How Much Economic Freedom Canada Needs To Compete
Economic Research | December 8, 2025
Economic Freedom Provincial Ratings, Fraser Institute 2025
Canada Needs the Right Balance of Flexibility and Stability to Support Stronger Outcomes and Faster Innovation
On December 2, the Fraser Institute published the Economic Freedom of North America 2025 (EFNA report) with fresh data on the conditions that impact income, job creation, and business growth across the North American continent. The report measures how much economic freedom people and companies have to make economic choices and what influences long term outcomes. The findings place every Canadian province in the lower half of the ranking except Alberta, which raises an important question for policymakers and industry. That is, how much economic flexibility does Canada need to stay competitive in a market that moves faster each year?
What EFNA Shows About Economic Outcomes
EFNA ranks 93 jurisdictions across North America. Alberta sits at 30th. British Columbia is tied at 47th. All other Canadian provinces fall in the bottom half of the continental list. Canada’s national score peaked at 7.93 in 2015 and now sits at 7.69. The United States records 7.96. These score gaps look small, but EFNA’s outcome data shows why they matter. The index tracks ten year changes in income, jobs, and population, and these outcomes differ significantly across environments.
See: Market Forces Pressuring Fintech Plans For 2026
EFNA groups jurisdictions into quartiles (statistical value that divides a dataset into 4 equal parts) to show how economic conditions impact long-term outcomes.
| Indicator | Most Free Quartile | Least Free Quartile |
| Average income | $66,367 | $3,510 |
| Income growth | 24% | 3% |
| Job growth | 18.3% | 9.4% |
| Population growth | 8.9% | 0.5% |
These numbers highlight a clear pattern across North America. Regions with more economic flexibility tend to show stronger movement in income, jobs, and population over long periods of time.
Canada’s Structural Reality And How Much Flexibility It Needs
Canada’s lower ranking results highlight the need to understand what balance of stability and flexibility supports better economic performance. Alberta leads the provinces at an EFNA index score of 6.44, followed by Ontario at 5.67. The remaining provinces sit in a narrow middle band, and Quebec ranks last at 3.10. This tight spread shows that Canada offers stability across the country, but it doesn't produce a high velocity region, so firms cannot rely on domestic momentum the way founders can in faster moving regions.
Another pattern is that income and job growth move at a steady pace. EFNA’s top performers show stronger gains over time. In Canada, steady progress helps households plan, but it also slows the pace at which they change financial behaviours.
Read: Breaking Canada’s Productivity Trap For Stronger Growth
Another pattern is EFNA shows the importance of mobility. Meaning, places with more economic flexibility tend to see more movement of people, jobs, and income. This mobility helps drive stronger results over time.
Canada's objective should be to find the level of flexibility that supports stronger economic movement while keeping the trust and protections that underpin Canada’s success. A practical balance for Canada should include regulatory processes that reduce friction, business and tax structures that attract investment, consumer protections that build trust without slowing innovation, labour rules that support adaptation, and clear frameworks that help firms navigate change.
Canada needs to create an environment that supports both stability and speed. The strongest results come from regions that achieve both.
Implications For Fintech And Financial Innovation
1. Movement Impacts Markets, and Movement Is Slower in Canada
Financial services are intrinsically related to the movement of money, people, firms, and confidence. EFNA outcome data confirms that these forces accelerate in more flexible environments. In Canada, they still move but the pace influences how companies grow. This steady environment affects how/when customers may be willing to try new financial tools and services, and how long new market sectors take to build growth and traction.
For fintechs, it means early fundamentals are more important, especially in the current economic climate. Companies need clearer value, earlier product market fit, stronger unit economics, and a model that can carry the business through longer adoption cycles. Growth comes, but it takes more time to build. Firms that rely only on rapid customer movement might face a harder path.
See: Fintech’s Role in Canada’s Productivity Revival
Government can help shorten this path. Acting as a first customer, reducing administrative friction, speeding approvals, and improving procurement can help credible firms break through sooner. Government can't replace real demand, but it can help companies reach it faster.
2. Scale Requires Mobility, Not Just Stability
EFNA highlights the importance of mobility whether that's economic, labour, or population mobility. Income and jobs move more strongly in flexible environments, and that movement supports scale. Canada’s strength is stability. People stay. Businesses stay. Conditions remain predictable. Stability is valuable, but on its own it doesn't support rapid scaling as well.
Fintechs that want to scale inside Canada need strategies that work in steadier environments. This may include building distribution partnerships earlier, designing products that create immediate and visible value, and targeting segments where switching costs are low. Companies need to shorten the time between awareness, trial, and sustainable use.
Policymakers can support scale by reducing barriers that slow switching, such as streamlining licensing, enabling data portability, modernizing onboarding requirements, and creating space for controlled innovation. These steps do not change stability. They add mobility where it is needed most.
3. Canada Needs the Right Balance of Flexibility and Trust
Canada’s provincial scores are pretty close together. Alberta leads the country, but no province reaches the levels seen in EFNA’s top performers. Canada has trust but it needs more flexibility at the edges to create the right conditions for growth.
For fintech companies, this means building trust and flexibility at the same time. Products must meet high expectations on security and reliability while offering customers faster ways to act, decide, and move money. Fintechs that pair strong trust with simple, flexible choices for customers tend to gain momentum in steady environments.
See: Regulating for Growth by Understanding Innovation
Policymakers play a role by making rules clearer, approvals faster, and compliance pathways more predictable.
Reducing friction does not weaken trust. It helps companies deliver it more effectively. The balance Canada needs is not maximum freedom. It is enough flexibility to let economic movement take shape while protecting the values that matter to Canadians.
Closing
The Economic Freedom of North America 2025 report (166 page PDF) is a data-driven look at the kind of environments that tend to generate stronger outcomes. Canada has strong institutions, talent, trust, and resilience. The question is whether the country can create enough flexibility to strengthen Canada's economic competitiveness. The foundation is here, but the next step is structural change.
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 Fintech Tuhk Raises US$6M Seed Round
Funding | December 8, 2025
Image: Freepik/rawpixel.com
Tuhk Building Global Collaboration Network for Payment Fraud Prevention
On December 8 2025, Canadian payment fraud fintech Tuhk announced a US$6 million seed round led by FINTOP (US), with particiation from Lloyds Banking Group (UK), and Capital One Ventures (US), to transform fragmented information into a shared intelligence network that improves approval rates, reduces disputes, and strengthens real time decisioning for financial institutions and merchants.
Tuhk is planning an imminent launch in the United Kingdom, the United States, and Canada and is offering an early access program while it refines its product ahead of the broader rollout, which you can confirm on the Tuhk early access page.
See: Rising Threats: The Global Impact of Push Payment Fraud
Andre Edelbrock, Tuhk Co-Founder and CEO:
"This funding round represents an important milestone for Tuhk, and we are grateful for the support from partners like Lloyds Banking Group, Capital One Ventures, and FINTOP. With these resources, we look forward to expanding the platform's reach and delivering practical, scalable solutions that strengthen the global payments ecosystem."
Investors Back Large Global Fraud Problem
Cybersecurity Ventures projects global cybercrime losses at US$10.5 trillion in 2025. This projection appears in the cybercrime cost estimate report. The figure includes financial loss from fraud, digital attacks, and misuse across global markets.
The scale of the projected loss shows the size of the problem that payment systems, banks, merchants, and financial platforms must work collaboratively to address in real-time, rather than isolated tools.
Launch Expertise And Leadership
The release says Tuhk’s founding team includes veterans of Ethoca and NuData Security, two Canadian companies that helped define collaboration based fraud intelligence before Mastercard acquired NuData Security in 2017 and then acquired Ethoca in 2019.
Tuhk builds on this experience as it prepares for a full commercial launch in early 2026. The company named Andre Edelbrock as CEO and appointed Stewart McIntosh as Chief Revenue Officer to lead global commercial strategy.
Outlook
Tuhk's US$6 million funding will go a long way as the company prepares to show financial institutions and merchants that by working together in sharing real-time shared fraud intelligence, improves approval accuracy, reduces misuse, and strengthens fraud outcomes for institutions that manage rising digital payment volumes.
Read: How Fintech Teams Move From Tools To Agents
Lloyds Banking Group framed the direction clearly saying that “collaboration is the only way we combat the increasing global threat of fraud and stop it from happening in the first place.”
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