Canadian fintech corporations raised $1.62 billion within the first half of 2025, with digital belongings and synthetic intelligence (AI) startups taking the lion’s share of contemporary funding, in line with KPMG Canada’s Pulse of Fintech report.
Whereas fintech funding slowed globally, Canadian buyers maintained regular help for ventures on the intersection of finance and rising expertise. The report singled out corporations constructing blockchain-based infrastructure and AI-driven monetary instruments as main development areas.
“If we take a look at the primary half of 2025, it is clear that digital belongings have re-emerged as a magnet for investor curiosity, regardless of the broader contraction in enterprise funding values,” mentioned Edith Hitt, a associate at KPMG Canada.
AI investments aren’t stunning, given its monumental enlargement in recent times. Nevertheless, Canadian buyers turning to digital belongings funding may catch some off guard, as the chance issue of the crypto market has all the time been up for debate amongst buyers.
Nevertheless, with extra pro-crypto rules within the U.S. and additional institutional push legitimizing sure components of the digital belongings sector, the dialog has clearly began to shift.
“Crypto’s resurgence popping out of 2024 was bolstered by a extra constructive regulatory tone within the U.S., the dismissal of the Coinbase lawsuit, and tangible mainstream adoption in stablecoin use circumstances,” Hitt added.
Cautious buyers
Whereas the $1.6 billion quantity could seem massive, zooming out, the numbers have truly dropped year-over-year because of macro occasions comparable to tariffs and better rates of interest. The report mentioned the primary half of 2025 knowledge is decrease than $2.4 billion invested within the Canadian fintech business in the identical time interval final yr, and $7.5 billion invested within the second half of 2024.
This does not imply buyers are shying away from fintech funding; fairly, there may be numerous ‘dry powder’ ready to be deployed, mentioned Dubie Cunningham, a Companion in KPMG in Canada’s Banking and Capital Markets Observe. Traders are searching for extra “high quality corporations” and urge for food for “maturing mid-to-large stage non-public fairness offers,” she added.
‘Sturdy’ second half
The truth is, KPMG Canada’s report defined that this pattern of investing in AI and digital belongings is more likely to proceed into the latter half of 2025.
“Investor curiosity in digital will stay robust within the second half of the yr and into 2026, pushed by the U.S. administration’s bullish view and lighter regulatory contact on cryptoassets, mentioned Hitt.
“The main target will probably be on infrastructure, funds rails, and tokenization platforms that may scale in compliant, built-in methods,” she added.
Hitt mentioned issues will solely warmth up extra on the AI facet, “as extra fintechs more and more undertake and deploy agentic AI options throughout areas like private finance, funding administration, fraud detection and lending.”
