In 2025, Canadian fintech companies have demonstrated resilience and innovation, raising approximately $1.62 billion in funding during the first half of the year. This significant influx of capital is largely attributed to the increasing interest in digital assets and artificial intelligence (AI) startups, as highlighted in KPMG Canada’s latest Pulse of Fintech report. Despite a global slowdown in fintech funding, Canadian investors have continued to show their support for ventures operating at the intersection of finance and cutting-edge technology.
KPMG’s report identifies companies focused on blockchain-based infrastructure and AI-driven financial tools as key areas for growth. According to Edith Hitt, a partner at KPMG Canada, “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.” This resurgence in digital assets funding has surprised some industry observers, particularly given the ongoing debates surrounding the risk factors associated with the cryptocurrency market.
The shifting landscape of investor sentiment can be attributed to several factors, including the pro-crypto regulations emerging in the United States and a growing institutional push that is legitimizing certain aspects of the digital assets sector. Hitt notes, “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.”
However, while the $1.62 billion figure is impressive, it represents a decline compared to past years. Specifically, this amount is down from the $2.4 billion invested in Canadian fintech during the same period in 2024 and the $7.5 billion raised in the second half of 2024. This trend does not indicate a withdrawal of investor interest; rather, it reflects a market that is recalibrating, with a substantial amount of “dry powder” awaiting deployment. Dubie Cunningham, a Partner in KPMG’s Banking and Capital Markets Practice, emphasizes that investors are now seeking “quality companies” and are particularly interested in “maturing mid-to-large stage private equity deals.”
The KPMG report suggests that the focus on investments in AI and digital assets is poised to continue into the latter half of 2025. Hitt forecasts, “Investor interest in digital will remain strong in the second half of the year and into 2026, driven by the U.S. administration’s bullish view and lighter regulatory touch on cryptoassets.” She adds that the emphasis will likely be on infrastructure, payment rails, and tokenization platforms that can scale in compliant and integrated ways.
On the AI front, Hitt predicts a significant uptick in activity, stating, “As more fintechs increasingly adopt and deploy agentic AI solutions across areas like personal finance, investment management, fraud detection, and lending, we can expect the sector to heat up further.”
Aoyon Ashraf, the Head of Americas at CoinDesk, has extensive experience in financial markets and has been closely monitoring these trends. He highlights the importance of staying informed about the evolving landscape of fintech.
For more insights on the state of fintech in Canada and the impact of emerging technologies, consult the full report from KPMG Canada here.
