KPMG sees strong second half for Canadian finishes after crypto, Ai raked at $ 1.6B funding

Canadian Fintech companies raised $ 1.62 billion in the first half of 2025, with digital assets and artificial intelligence (Ai) Startups taking part of the fresh lion’s fresh fund, according to KPMG Canada Pulse of Fintech Report.

As Fintech funding has slowed down the world, Canadian investors maintain stable support for adventures at financial intersection and emerging technology. The report sang Blockchain -based infrastructure -based blockchain companies and financial tools driven by AI as the leading growth areas.

“If we look at the first half of 2025, it is clear that digital assets reappear as a magnet for investor’s interest, despite the broader contraction of the investment values ​​in the adventure,” said Edith Hitt, a partner at KPMG Canada.

AI investments are not surprising, given its massive expansion in recent years. However, Canadian investors returning to funding digital assets can catch some guards, as the risk of crypto market factor has always been a debate with investors.

However, with more pro-crypto regulations in the US and further institutional pushing for the refinement of some parts of the digital assets sector, the conversation clearly began.

“Crypto’s resurrection that appears in 2024 is strengthened by a more constructive tone of the US regulation, the removal of Coinbase’s lawsuit, and tangible mainstream adoption in stablecoin use cases,” Hitt added.

Carefully investor

While the $ 1.6 billion number may seem big, zooming out, the numbers actually go down the year-on year due to macro events such as tariffs and higher interest rates. The report said the first half of 2025 data was less than the $ 2.4 billion invested in the Canadian industry at the same time last year, and $ 7.5 billion invested in the second half of 2024.

This does not mean that investors avoid funding; Instead, there are many ‘dry powder’ waiting to be deployed, Dubie Cunningham, a KPMG partner in Banking and Capital Market, said Canada’s Banking and Capital Market. Investors are looking for more “quality companies” and appetite for the “main mid-to-large phase of private equity deals,” he added.

‘Strong’ second half

In fact, the KPMG Canada report explained that the AI ​​investment trend and digital assets are likely to continue in the last half of 2025.

“The investor’s interest in digital will remain strong in the second half of the year and in 2026, driven by the US administration’s perspective and lighter regulation of cryptoassets, Hitt said.

“The focus is on infrastructure, payment metals, and tokenization platforms that can be measured in the following, combined ways,” he added.

Hitt said things would only warm up to the AI ​​part, “because more fintechs are increasingly strengthening and deploying AI agent solutions in areas such as personal finances, investment management, discovering fraud and lending.”