The Canadian financial sector witnessed a significant uptick in crypto adoption in 2023, according to a recent survey by KPMG in Canada.
Financial firms offering crypto products and services increased by 22% from 2021, while institutional investors incorporating crypto into their portfolios rose by 26% during the same period.
Resurgence
Financial Services: 50% of respondents now provide at least one type of cryptoasset service, increasing from 41% in 2021. Crypto trading, custody, clearing, and settlement services saw substantial growth, with 52% of firms now offering trading services, up from none reported in the previous survey.
Meanwhile, 39% reported either direct or indirect exposure to crypto, marking an increase from 31% in 2021. Notably, direct ownership of digital assets has more than doubled, with 75% of investors now holding these assets compared to 29% two years ago.
Kunal Bhasin, partner and co-leader of KPMG in Canada’s Digital Assets practice, remarked,:
“After the setbacks in previous years, including market instability and high-profile frauds, 2023 has emerged as a year of strong recovery and confidence in cryptoassets. The growing US debt and inflation have driven investors towards cryptocurrencies as a protective hedge and a dependable store of value.”
Kareem Sadek, Emerging Technology Risk leader and co-leader of the practice, cited regulatory advancements as a key driver of the resurgence. He said:
“Canada has established itself as a frontrunner in the crypto market by approving the first Bitcoin and Ethereum ETFs and by supporting innovative strategies like derivatives and Ethereum staking.”
