The post KPMG Sees Strong Second Half for Canadian Fintechs After Crypto, AI Raked in $1.6B Funding appeared on BitcoinEthereumNews.com.

Canadian fintech companies raised $1.62 billion in the first half of 2025, with digital assets and artificial intelligence (AI) startups taking the lion’s share of fresh funding, according to KPMG Canada’s Pulse of Fintech report. While fintech funding slowed globally, Canadian investors maintained steady support for ventures at the intersection of finance and emerging technology. The report singled out companies building blockchain-based infrastructure and AI-driven financial tools as leading growth areas. “If we look at the first half of 2025, it’s clear that digital assets have re-emerged as a magnet for investor interest, despite the broader contraction in venture investment values,” said Edith Hitt, a partner at KPMG Canada. AI investments aren’t surprising, given its monumental expansion in recent years. However, Canadian investors turning to digital assets funding might catch some off guard, as the risk factor of the crypto market has always been up for debate among investors. However, with more pro-crypto regulations in the U.S. and further institutional push legitimizing certain parts of the digital assets sector, the conversation has clearly started to shift. “Crypto’s resurgence coming out of 2024 was reinforced by a more constructive regulatory tone in the U.S., the dismissal of the Coinbase lawsuit, and tangible mainstream adoption in stablecoin use cases,” Hitt added. Cautious investors While the $1.6 billion number may seem big, zooming out, the numbers have actually dropped year-over-year due to macro events such as tariffs and higher interest rates. The report said the first half of 2025 data is lower than $2.4 billion invested in the Canadian fintech industry in the same time period last year, and $7.5 billion invested in the second half of 2024. This doesn’t mean investors are shying away from fintech funding; rather, there is a lot of ‘dry powder’ waiting to be deployed, said Dubie Cunningham,…

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Filed under: News - @ August 23, 2025 7:30 pm