Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Web3, Decentralization, DAOs
APIs and the Evolution of Digital Platforms: Towards a Three-Sided Market
Citi | Jun 16, 2023
Image: Citi
Embracing the three-sided market model, where financial institutions integrate with digital platforms alongside buyers and sellers, can unlock new network effects, accelerate economic growth, and enhance customer engagement in the digital economy.
- The report introduces the concept of a "three-sided market" where financial institutions are integrated into digital platforms alongside buyers and sellers. This model enhances the platform's value proposition by providing financial services such as payments, foreign exchange, and credit within the platform itself.
- Integration of Financial Services into Platforms:
- The report discusses various ways platforms have integrated financial services, including partnering with established financial institutions, creating regulated subsidiaries, or leaving the provision of financial services to external third parties.
- The report identifies Open Banking, Embedded Finance, and Decentralized Finance (DeFi) as potential catalysts for the emergence of three-sided marketplaces.
- Opportunities for Fintechs:
- They could also collaborate with platforms to create unique value propositions, such as exclusive discounts or rewards, to drive customer engagement and loyalty.
- They could also develop solutions that help platforms integrate financial services more efficiently and could play a key role in facilitating the transition.
See: FIS Dives Deeper into Embedded Finance with Bond Acquisition
- Opportunities for Banks:
- Banks could see this as an opportunity to maintain customer engagement and expand their services in the digital economy. By becoming integral components of these platforms, banks could tap into new customer bases and participate more actively in the digital economy.
- Banks could explore partnerships with platforms or consider developing their own platforms. They could also consider how to leverage their existing customer relationships and trust to provide services within these platforms.
- Implication for Regulators:
- Regulators need to consider the implications of this new business model, particularly in terms of ensuring fair competition, data privacy, and security. They may need to update regulations to accommodate these new business dynamics and ensure consumer protection.
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Download the 20 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, 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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Bloomberg Invest: Banking and Blockchain Conversation with Former SEC Chair Jay Clayton and Dan Morehead of Pantera Capital
Pantera Capital | Dan Morehead | Jun 29, 2023
Image: Pantera Capital CEO, Dan Morehead
“I think the crisis is a harbinger for the future. If you think about it, banks are a terribly-designed stablecoin."
A conversation on banking and blockchain with Dan Morehead, CEO Pantera Capital Conversation and former SEC Chairman Jay Clayton at the Bloomberg Invest Conference on June 8th moderated by Carol Massar of Bloomberg:
Carol Massar: “On lending and banks, regional banks, obviously the other crisis….”
Dan Morehead: “I think the crisis is a harbinger for the future. If you think about it, banks are a terribly-designed stablecoin. “I’ll pitch you a stablecoin idea…”
Carol Massar: “Do you agree? Do you agree, Jay?”
Jay Clayton: “Banks serve an incredibly important function and they have been the source of liquidity transformation throughout the growth of our economy.”
Dan Morehead: “Let me pitch a stablecoin idea: I invest $15 million in equity in my project. Then I sell to the public $195 million stablecoins. With those proceeds I buy $210 million in risky assets. I promise the stablecoin holders incredible liquidity. With just one click on their smartphones, they can get their money back same-day – in unlimited amounts.
When asked: ‘Isn’t 13-to-one leverage kind of aggressive on a stablecoin?’
I’m honest – I tell everybody the truth: ‘If the risky assets go up, I’m keeping all the profits. But, if they fall in value, I’m going to stiff the taxpayer.’
“Unfortunately, that’s what a bank is.”
See: Global Regulatory Collaboration Key to Cryptocurrency Asset Oversight, Urges World Economic Forum
Banks as Flawed Stablecoins:
- According to Dan Morehead, CEO of Pantera Capital, traditional banks operate similarly to poorly designed stablecoins.
- Morehead argued that banks, like a hypothetical stablecoin, leverage funds at a high ratio, promising liquidity to holders while keeping profits from risky assets and passing losses onto taxpayers.
- This model, according to Morehead, is flawed and unsustainable, and recent failures in the U.S. banking system underscore this point.
Blockchain as the Future:
- Morehead emphasized the potential of blockchain technology to revolutionize the financial industry. He compared the advent of blockchain to the Medici family's use of double-entry accounting in the 15th century, which laid the foundation for modern banking.
- Blockchain, as the next evolution of distributed ledgers, offers transparency, decentralization, and resilience against crises, as demonstrated by the performance of cryptocurrencies and DeFi (decentralized finance) during recent banking failures.
- The conversation suggested that blockchain could gradually replace traditional banking systems, a transition that may already be reflected in the market valuations of cryptocurrencies compared to established banks.
Read: Dispelling FUD: Why Binance’s Exit from Canadian Crypto Markets Strengthens Canada’s Ecosystem
Regulatory Challenges:
- Clayton acknowledged the need for rigorous regulation of retail investment products, including those based on blockchain.
- Morehead, however, warned that lack of regulatory clarity in the U.S. could push innovation offshore, as has already happened with many blockchain protocols.
- Both agreed that it's in the national interest for the U.S. to embrace blockchain technology and provide clear regulatory guidance. The conversation suggested that the U.S. could learn from other countries that are actively supporting blockchain-based financial systems, including the issuance of sovereign debt.
Watch this Fireside Chat with Charoline D. Pham, Commissioner of the U.S. CFTC for a perspective on crypto regulations:
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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, 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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Digital Renaissance: Exploring 15 Ontario-Based Startups Reshaping the Crypto Landscape
Canadian Venture | Jun 15, 2023
Image: Freepik/Pikisuperstar
Ontario is quickly becoming a global hub for digital asset innovation, with a thriving ecosystem of startups spearheading transformative technologies in the realm of cryptocurrency and blockchain.
Listed below are just a handful of innovative enterprises that are not just revolutionizing the digital asset landscape in Ontario, but they are making significant strides in shaping the future of global finance, technology, and digital ecosystems.
| Company Name | Description |
|---|---|
| Figment | A pioneering startup dedicated to supporting the adoption, growth, and long-term success of the Web 3 ecosystem. |
| Newton.co | A leading cryptocurrency trading platform that enables seamless buying and selling of Bitcoin and Ethereum. |
| Haloo | An enterprise-focused startup on a mission to streamline and simplify the complex process of trademarking. |
| VirgoCX | Canada’s leading regulated cryptocurrency trading platform, committed to ensuring safe, easy, and affordable crypto trading. |
| NFT3 | A groundbreaking startup that has developed the first Unified Decentralized Identity and Credit Network for Web3. |
| Source.network | Revolutionizing data management in the Web3 landscape as an interoperable data management layer. |
| Integral Treasury | Offers a cutting-edge real-time finance platform tailored to Web3 enterprises. |
| Rehuman | Redefining human identity for the digital economy. |
| Yuser | A decentralized social networking platform designed to empower users. |
| Balance | Offers a comprehensive solution for the custody, trading, and management of digital assets. |
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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, 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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Overcoming KYC: How Nodeless is Simplifying Bitcoin Transactions for Merchants
Decrypt | Alyssa Hertig | Jun 26, 2023
Nodeless, a new revolutionary platform in the Bitcoin ecosystem, is making waves for its innovative approach to facilitating transactions on the Bitcoin Lightning Network enabling merchants to accept Bitcoin payments in a seamless manner, distinguishing itself as a non-KYC service that prioritizes privacy and efficiency.
- Canadian fintech company: The platform's name, 'Nodeless', originates from its unique operating model. In a typical Lightning Network setup, users must run their own Lightning node, a process that can be challenging for non-technical users or those strapped for resources. Nodeless simplifies this process by taking over the role of the node operator.
- When a payment is made, it is sent to Nodeless, which then promptly forwards the payment to the merchant’s designated Bitcoin address. This approach enables merchants to accept payments without the need for technical knowledge or the responsibility of running a node.
- While Nodeless does technically hold the user's funds briefly during the transaction process, the platform is committed to forwarding these funds quickly to the user's Lightning or Bitcoin address, resulting in a streamlined payment experience.
See: Payments without banks goes mainstream with Twitter on Bitcoin Lightning Network
- A key differentiator for Nodeless is its non-KYC (Know Your Customer) stance. Unlike traditional financial institutions and many digital payment providers, Nodeless does not require users to share identifying information to begin accepting payments. This feature has sparked interest among merchants and users looking for increased privacy in their transactions.
- However, this business model has raised some eyebrows.
- Critics argue that as Nodeless grows, it may face increasing regulatory scrutiny, particularly around its non-KYC policy and its centralized control over transactions.
- Despite these concerns, Nodeless remains optimistic, operating legally under Canadian laws where transactions under $1,000 do not require KYC identification. The company is also considering a move to El Salvador, a country known for its welcoming attitude towards Bitcoin and cryptocurrencies.
- Outlook: Nodeless is offering a novel approach to Bitcoin Lightning payments that could reshape the way merchants and users interact with Bitcoin. By simplifying the payment process and prioritizing user privacy, Nodeless is paving the way for broader adoption of Bitcoin as a medium of exchange. While regulatory hurdles may lie ahead, the platform's innovative model has the potential to significantly impact the Bitcoin ecosystem.
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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, 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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Aquanow: Stablecoins and Gauging Market Sentiment
Aquanow | Sebastien Davies | Jun 22, 2023
Assessing Market Sentiment with Stablecoins, Aquanow
Centralized, asset-backed stablecoins like USDT are gaining significant market share due to their increased transparency and minimal dependence on traditional banking systems, with platforms like Curve Finance's 3Pool serving as critical tools for gauging market sentiment in the digital economy.
- In the digital assets landscape, the spotlight is on stablecoins, particularly those of the centralized and asset-backed type.
- These intriguing programmable money forms, characterized by their fixed prices, are not about price speculation but rather a story of financial innovation and user adoption.
- Their inherent price stability, however, does not exclude occasional bouts of volatility, pivotal moments that underscore their vital role in the foundations of digital finance.
- Notably, the 2023 U.S. banking crisis triggered a seismic shift in market sentiment when USDC depegged, propelling a reversal in market share trends favoring USDT over other stablecoins.
See: OpEd: Draft U.S. Bill on Stablecoins Highlight Differences with CBDCs
- USDT:
- With improved transparency regarding its reserves and a modest reliance on the U.S. banking system, USDT has experienced a dramatic increase in its market capitalization.
- Nonetheless, the market's sensitivity to changes in stablecoin pegs was evident when USDT decoupled from its peg, reinforcing the need for market participants to stay vigilant in the dynamic world of digital finance.
- 3Pool:
- Automated market maker (AMM) platforms like Curve Finance's 3Pool offer valuable insights into market sentiment in the digital economy. The sudden increase in Tether's share of the 3Pool, for instance, indicated a surge in USDT selling volumes, underscoring the importance of these platforms as barometers of market sentiment.
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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, 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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Regulatory Victory Against Ooki DAO
WSJ | Dylan Tokar | Jun 13, 2023
In a landmark ruling, the U.S. Commodity Futures Trading Commission (CFTC) has successfully held the decentralized autonomous organization (DAO), Ooki, accountable under the Commodity Exchange Act who has been ordered to pay a fine of $643,542 and shut down its website and blockchain-based application.
- This marks a significant victory for regulators, establishing a legal precedent for potential future lawsuits against DAOs. However, the challenge lies in enforcing this ruling due to the anonymous and informal organization of DAO members. DAOs, including Ooki, operate on a decentralized finance (DeFi) protocol, which allows control only through a majority vote by members. The identities of these members often remain undisclosed, making it difficult to collect the imposed fine.
See: Court Tests the Liability of DAOs and Their Makers: What You Need to Know
- Ooki DAO's protocol, which allowed users to invest and speculate on virtual currencies, was initially created by a limited liability company, bZeroX. However, the company transferred control to the DAO in August 2021. The CFTC alleged that this transfer was designed to shield the protocol from regulatory oversight.
- The ruling against Ooki DAO is part of a larger regulatory crackdown on the cryptocurrency industry, with the U.S. Securities and Exchange Commission recently launching lawsuits against Binance and Coinbase. With these legal challenges, the crypto industry is becoming increasingly subject to regulatory scrutiny.
Keywords: DAO, Ooki, CFTC, Commodity Exchange Act, DeFi, regulatory crackdown, cryptocurrency industry, Binance, Coinbase
Continue to the full article --> 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, 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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From Collapse to Reinvention: The Emergence of a Decentralized Crypto Banking Ecosystem
BNN Bloomberg | | Jun 9, 2023
Image: Unsplash/Bastian Riccardi
After the collapse of Silvergate Capital Corp. and Signature Bank, which previously catered to crypto companies, a new banking landscape is emerging due to the regulatory crackdown in the US.
- The new banking system for crypto companies is fragmented and less US-centric.
- Crypto firms are now turning to smaller regional banks in the US, as well as Swiss and Asian banks, for opening accounts.
- In the UK, companies are resorting to payment-service providers. The diversification of banking-service providers implies that the new system may be more resilient even though it is less seamless.
Interview with FV Bank CEO at FFCON23: Rebuilding Trust in Web3: The Role of Custodians and Banks
New Emerging Crypto Banking Landscape
| Region | Bank | Summary |
|---|---|---|
| US | Customers Bancorp | Based in Pennsylvania, it launched a real-time payments platform in late 2021. It caters to trading firms, exchanges, and institutional investors. |
| US | Cross River | New Jersey-based, offers banking services to crypto firms like Coinbase and Circle, provides real-time money movement with a $1 million limit per transaction. |
| US | Western Alliance | Phoenix-based, has a blockchain and digital-assets team, offers real-time payments capability powered by Tassat. |
| US | Axos Financial | Las Vegas-based, opens bank accounts for some crypto firms, had plans for retail crypto trading and launching a stablecoin which are now on hold. |
| US | FV Bank | Registered in Puerto Rico, offers digital-asset custody service allowing clients to hold Bitcoin and US dollars within the same bank account. |
| Asia | Standard Chartered | Provides banking services to a select group of digital-asset service providers in Singapore, Hong Kong, and the United Arab Emirates. |
| Asia | DBS | Singapore’s biggest bank, offers deposit accounts to regulated digital-asset and blockchain firms, provides on- and off-ramping through its DBS Digital Exchange platform. |
| Asia | ZA Bank | Hong Kong’s biggest virtual bank, plans to offer token-to-fiat currency conversions over licensed exchanges, provides account services to the digital sector. |
| Europe, UK | BCB Group | London-based, offers access to its payment network, Blinc, for digital-asset outfits, similar to Silvergate's SEN, also provides business accounts, digital-asset custody and treasury services. |
| Europe, UK | Bank Frick | Liechtenstein-based, offers banking services including business accounts for blockchain and cryptocurrency sectors, trading and custody of select tokens. |
| Europe, UK | SEBA Bank | Swiss firm, provides access to trading, investments in structured products, custody, and borrowing for digital and traditional assets. |
| Europe, UK | Sygnum Bank | Operates in Switzerland and Singapore, specializes in digital assets, offering custody, brokerage, tokenization, asset-management, lending, and business-banking services. |
| Europe, UK | Clear Junction | Payment-services provider, offers financial institutions including cryptocurrency companies access to UK accounts, virtual international bank account numbers, payment networks, currency exchange and electronic wallets. |
Continue to the full article --> 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, 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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