Canadian fintech firms raked in a whopping $1.62 billion in the first half of 2025, with digital assets and AI startups leading the charge, per KPMG Canada’s Pulse of Fintech report. Despite a global fintech funding slowdown, Canadian backers remained gung-ho about projects bridging finance and cutting-edge tech, especially those dabbling in blockchain setups and AI-powered money tools. Edith Hitt, a KPMG Canada partner, cheekily pointed out, “Yep, digital assets are back in the spotlight this year, attracting investors like moths to a flame, even with the rollercoaster ride of venture investments.” While AI investments are a no-brainer due to their meteoric rise, the sudden shift to digital assets in Canada might raise a few eyebrows, considering the crypto market’s wild reputation among investors. But hey, with the U.S. warming up to crypto laws and institutions cozying up to parts of the digital assets realm, the tide seems to be changing. Hitt highlighted how 2024’s crypto comeback, coupled with friendlier U.S. regulations and mainstream stablecoin love, set the stage for a crypto renaissance. Now, about those cautious investors eyeing the $1.6 billion figure… Sure, it sounds hefty, but compared to past years, it’s a bit of a dip thanks to global hiccups like tariffs and interest rate hikes. Don’t fret, though—there’s still a stash of “dry powder” waiting to fuel fintech dreams, as KPMG’s Dubie Cunningham noted. Investors are hungry for top-tier projects, seeking out mature startups for big-league private equity plays. And what’s next? Brace yourself for a ‘strong’ second half, predicts KPMG Canada. The AI and digital assets craze isn’t going anywhere, with Hitt foreseeing a continued surge into late 2025. She teased, “Buckle up for more digital asset love, driven by the U.S. government’s crypto-friendly stance and a lighter touch on regulations.” Expect a focus on robust infrastructure, payment systems, and scalable token platforms that play by the rules. But wait, there’s more! The AI arena is set to sizzle as fintechs cozy up to agentic AI solutions for tasks like personal finance, fraud spotting, and investment juggling. Looks like the crypto revolution is just getting warmed up, folks!
Crypto Craze Boosts Canadian Fintechs: KPMG’s Insights
