Key Insights:
- In the first half of 2025, Canadian fintechs acquired $1.62 billion in funding, majorly directed to digital assets and AI startups.
- Even during a global investment downturn, Canadian investors remain keen on fintech sector, especially ventures leveraging blockchain and AI technologies.
- Forecasts indicate a robust second half for these investments, supported by favorable regulations in the U.S. and growing adoption of AI tools.
Canadian fintech enterprises collected $1.62 billion during the first six months of 2025, predominantly funneled into AI and digital assets, as revealed in KPMG Canada’s Pulse of Fintech report.
While there has been a slowdown in global fintech investments, Canadian stakeholders continue their support for initiatives that blend finance and cutting-edge technologies. The report highlights organizations focusing on blockchain-based systems and AI financial applications as key growth sectors.
“If we focus on the first half of 2025, it’s evident that digital currencies have reinvigorated investor enthusiasm, notwithstanding the overall decline in venture capital values,” stated Edith Hitt, a partner at KPMG Canada.
“The renewed interest in digital assets from Canadian investors may surprise some, considering the ongoing risks associated with cryptocurrency markets. However, U.S. regulatory enhancements are shifting perceptions positively.” Hitt further emphasized the influential role of pro-crypto legislation in the U.S., the resolution of litigation against Coinbase, and the surge in mainstream acceptance of stablecoins in reaffirming interest in cryptos.
While the $1.6 billion figure may appear significant, the context shows a decrease compared to the $2.4 billion invested in Canadian fintech during the same timeframe last year, alongside $7.5 billion invested in the second half of 2024, influenced by global challenges such as trade tariffs and increased interest rates.
This trend does not indicate a withdrawal from fintech investments. Instead, there is a considerable amount of untapped capital awaiting deployment, noted Dubie Cunningham, a KPMG Partner in Canada. Investors are currently more inclined towards identifying quality companies and are eager for promising mid-to-large stage private equity opportunities.
KPMG’s assessment reveals that the inclination to invest in both AI and digital assets will persist through the latter half of 2025 with a continued focus on infrastructure, payment systems, and compliant tokenization platforms.
Hitt concluded, “Investor confidence in digital initiatives will remain steadfast into 2026, driven by a supportive legislative environment in the U.S., while AI adoption across various sectors, including personal finance and fraud detection, continues to rise.”
