Updated on:12/13/2025 05:25 PM 
Canada's financial landscape is undergoing a remarkable transformation as cryptocurrency integration reaches unprecedented levels, according to comprehensive findings from KPMG's latest industry research conducted throughout 2023.
The data reveals a compelling narrative of growth within the nation's financial sector, with service providers expanding their digital asset offerings by 22% compared to 2021 metrics. Simultaneously, institutional investors have significantly increased their cryptocurrency allocations, with portfolio incorporation climbing by 26% over the same timeframe.
Within financial services, the momentum is particularly striking. Half of all surveyed institutions now provide at least one form of cryptocurrency-related service, representing a notable increase from the 41% recorded in 2021. The expansion encompasses trading, custody, clearing, and settlement solutions, with 52% of financial establishments now facilitating crypto transactions—marking a dramatic emergence where such services were previously absent.
Equally telling is the shift in investor behavior. Nearly 40% of financial professionals now report either direct or indirect exposure to digital assets, up from 31% two years prior. Perhaps most significantly, direct ownership of cryptocurrencies has more than doubled, with three-quarters of investors now holding these digital assets compared to just 29% in 2021.
Kunal Bhasin, partner and co-leader of KPMG Canada's Digital Assets practice, observed:
Kareem Sadek, Emerging Technology Risk leader and co-leader of the practice, emphasized that regulatory developments have played a crucial role in this market resurgence. He noted:
The research also indicates a strategic evolution toward more sophisticated investment approaches within Canada's financial services ecosystem. Financial institutions are now offering an average of two to three cryptocurrency services, up from the previous range of one to two.
This expansion is fundamentally driven by escalating client demand for digital asset solutions, which now influences 80% of financial service providers—a substantial increase from 50% just two years ago. Institutional investors are further diversifying their portfolios, with approximately one-third now allocating at least 10% to cryptocurrency investments, representing growth from the previous one-fifth.
Market maturity and improved custody solutions have catalyzed adoption, with 67% of investors initiating their first cryptocurrency positions—a remarkable surge from the mere 14% recorded in the previous assessment.
Looking ahead, Sadek anticipates that the anticipated approval of an Ethereum exchange-traded fund will continue to propel institutional engagement and investment throughout 2024. He concluded:
