XRP investment trends are playing a crucial role in shaping the optimistic outlook for the Canadian fintech sector in the latter half of 2025. According to KPMG Canada’s Pulse of Fintech report, Canadian fintech firms attracted an impressive $1.62 billion in funding during the first half of the year. Startups focusing on digital assets like XRP and artificial intelligence (AI) were among the biggest beneficiaries.

Despite a slowdown in global fintech funding, Canadian investors continued to funnel capital into ventures at the crossroads of finance and innovation. Blockchain infrastructure providers and AI-driven financial platforms led the charge as the most sought-after business models.

Edith Hitt, a partner at KPMG Canada, emphasized this shift, noting that “digital assets have once again captured investor attention, even as global investment values retreat.” This renewed focus on platforms utilizing cryptocurrencies like XRP suggests that fintech in Canada is evolving in line with broader tech and regulatory developments.

Reshaped By Institutional Confidence and Regulation

While AI has been rapidly gaining traction worldwide, the increasing investor interest in digital asset funding—especially toward cryptocurrencies such as XRP—might come as a surprise to some. The crypto market has long been viewed as high-risk, yet evolving U.S. regulations are helping to alter that perception.

Supportive regulatory actions, including the U.S. government’s favorable stance on cryptocurrency and a wave of institutional engagement, are shifting the narrative. “Crypto’s resurgence following the reforms of 2024 was catalyzed by regulatory clarity, the dismissal of the Coinbase lawsuit, and the practical use of stablecoins,” Hitt added.

Investor Caution Still in Play

Although fintech funding in Canada remains robust, the numbers tell a more nuanced story. The $1.62 billion raised in H1 2025 was down from the $2.4 billion in the same period last year and significantly below the $7.5 billion in H2 2024. The decline in numbers is largely attributed to macroeconomic headwinds such as tariffs and rising interest rates.

However, this doesn’t signal retreat as much as it indicates strategy. “There’s a substantial amount of capital still waiting to be invested,” says Dubie Cunningham, a partner in KPMG Canada’s Banking and Capital Markets Practice. Investors are simply becoming more selective, preferring mature, mid-to-large scale private equity deals focused on high-quality companies.

Forecasting a Resilient Second Half

The outlook for the remaining months of 2025 is decidedly bullish, particularly in areas influenced by XRP and other digital assets. Hitt anticipates continued momentum: “Investor interest in digital will only grow into the second half of 2025 and in 2026, energized by lighter regulation and a forward-looking approach to cryptoassets.”

Infrastructure development, payment rails, and tokenization technologies are expected to receive the lion’s share of attention from investors. These systems will need to demonstrate compliance readiness and the ability to integrate within broader ecosystems.

The trend toward artificial intelligence also shows no signs of slowing. Hitt noted that AI solutions are being deployed more extensively across key fintech functionalities—from personal finance and asset management to fraud detection and lending processes—suggesting that both AI and digital assets like XRP will define the next wave of innovation in Canadian fintech.