Robinhood and Coinbase Expand into Canada

Two of the largest US fintech players, Robinhood and Coinbase, are making major moves into Canada’s crypto landscape as part of broader international expansion efforts. Robinhood announced its $179 million acquisition of WonderFi, a company that owns two of Canada’s leading regulated crypto platforms, Bitbuy and Coinsquare. Meanwhile, Coinbase is investing in Canadian stablecoin issuer Stablecorp to promote the adoption of QCAD, a tokenized version of the Canadian dollar. Coinbase and Stablecorp Partner to Push Canadian Dollar Stablecoin Amid Regulatory Hurdles Coinbase has announced a strategic partnership with Stablecorp, the Canadian fintech firm behind the QCAD stablecoin. The collaboration, revealed during the Blockchain Futurist Conference in Toronto, includes an undisclosed investment by Coinbase and a joint marketing campaign to boost adoption of QCAD — a fiat-backed, tokenized version of the Canadian dollar. Stablecorp’s flagship product QCAD, (Source: Stablecorp ) Lucas Matheson, CEO of Coinbase Canada, said in a recent interview that stablecoins are “especially urgent” for Canadian users, citing the country’s outdated payment infrastructure. “It’s really important that we have a stablecoin for Canadians,” Matheson emphasized, highlighting how “wire transfers cost $45 and take 45 minutes of paperwork” in Canada. “Canada has no peer-to-peer payment rail,” he added. “With stablecoins, 24/7, instant, borderless payments become possible — this is already feasible with existing tech.” Addressing Canada’s Payment Bottlenecks The push for QCAD adoption is part of a larger trend in which financial institutions are embracing blockchain technology to enable faster, cheaper, and more accessible financial transactions. While global stablecoin leaders like Tether (USDT) and USD Coin (USDC) dominate with a combined market cap exceeding $245 billion, homegrown options like QCAD remain niche due to a host of structural and regulatory challenges. Stablecorp’s QCAD — one of the first fiat-backed stablecoins denominated in Canadian dollars — is backed 1:1 with Canadian fiat reserves. However, as of July 2024, the company reported that only around $175,000 worth of QCAD were in circulation, underscoring the slow pace of local adoption. “Canada lacks a clear path for stablecoin adoption,” Coinbase said in a March 26 blog post , attributing the issue to ongoing legal ambiguity. “Fiat-backed stablecoins need to be treated as payment instruments rather than securities,” the exchange urged, adding that the current framework hinders innovation and widespread use. The announcement comes at a pivotal time for the Canadian crypto industry. Just last month, Mark Carney — a former governor of the Bank of Canada and the Bank of England — was elected as the country’s new Prime Minister. Known for his skepticism toward cryptocurrencies, Carney’s leadership introduces new questions about the government’s approach to digital assets. Nevertheless, Matheson expressed optimism: “We’re asking the federal government to develop a national strategy for digital assets. Crypto is strategic, and we hope this new administration sees that.” The comments reflect a growing consensus among Canadian crypto executives that the federal government must catch up to jurisdictions like the United States, where regulators are starting to differentiate between payment-focused stablecoins and speculative digital assets. In April, the US Securities and Exchange Commission clarified that stablecoins marketed strictly as payment tools do not qualify as securities — a regulatory position that Coinbase believes Canada should emulate. The Future of QCAD and Canadian Crypto For Coinbase, the partnership with Stablecorp is not just about pushing a new stablecoin — it’s about laying the foundation for a more inclusive, cost-effective, and modern financial system in Canada. If successful, QCAD could provide Canadians with a stable and regulated on-chain alternative to traditional bank transfers and help close the payment efficiency gap that has left the country behind other G7 economies. Stablecorp has yet to release a new reserve report since July 2024, a fact that may raise transparency concerns for potential users. Still, the involvement of a global giant like Coinbase may lend the project the credibility and scale it needs to break through to mainstream use. Robinhood to Acquire WonderFi for $179 Million in Strategic Canadian Expansion In related news, Robinhood Markets Inc., the popular US-based fintech known for pioneering commission-free stock and crypto trading, has announced its latest international push with the acquisition of Canadian crypto firm WonderFi in a $250 million CAD ($179 million USD) all-cash deal. The acquisition, set to close in the second half of 2025, marks another step in Robinhood’s global expansion and deepening commitment to the crypto sector. According to Robinhood’s May 13 press release, the deal will bring WonderFi’s full suite of digital asset platforms under the company’s umbrella, including Bitbuy and Coinsquare — two of Canada’s oldest and most regulated crypto trading platforms. The acquisition will significantly bolster Robinhood’s presence in the Canadian market and grant access to more than 2.1 billion CAD in assets under custody across WonderFi’s platforms. “WonderFi has built a formidable family of brands serving beginner and advanced crypto users alike, making them an ideal partner to accelerate Robinhood’s mission in Canada,” said Johann Kerbrat, senior vice president and general manager of Robinhood Crypto. WonderFi, a publicly traded company on the Toronto Stock Exchange, has spent the past several years consolidating Canada’s fragmented crypto market. In 2024, the firm processed over 3.57 billion CAD in trading volume — a 28% increase year-over-year — while providing staking and custody services in addition to core crypto trading. Wonderfi share price surges after deal announcement (Source: Google Finance ) The acquisition offer of 0.36 CAD per share represents a 41% premium over WonderFi’s last closing price and a 71% premium over its 30-day volume-weighted average. Before the deal was announced, WonderFi’s market capitalization stood at 163.9 million CAD, with its stock having declined 13.6% year-to-date. Subject to shareholder, regulatory, and court approvals, the deal could mark a significant reshaping of the Canadian crypto industry, with Robinhood set to inherit a key foothold in a region that has yet to fully embrace retail digital asset adoption at scale. Riding the 2025 Crypto M&A Wave Robinhood’s move comes amid a broader surge in cryptocurrency mergers and acquisitions fueled by improved regulatory clarity under US President Donald Trump’s administration. Companies are seizing the opportunity to scale globally, attract new users, and expand into strategic markets. In just the first half of 2025, the crypto industry has seen several landmark acquisitions. Coinbase acquired crypto derivatives exchange Deribit for $2.9 billion, and Ripple bought prime brokerage platform Hidden Road for $1.25 billion. Earlier this month, Kraken completed its acquisition of NinjaTrader, enabling the platform to offer crypto derivatives in the US market. Robinhood itself has been particularly active in expanding its crypto footprint. Last year, it acquired Bitstamp for $200 million, giving the firm access to institutional-grade infrastructure and clients. More recently, reports surfaced that Robinhood is developing a blockchain network to help European retail investors trade US securities — a move that could position it as a global financial superapp. While Canada has developed a more structured regulatory environment for crypto firms than many jurisdictions, it remains a cautious market. WonderFi’s operations under Canadian regulators will offer Robinhood a streamlined entry point into the country’s crypto space with compliant infrastructure already in place. Still, the deal must pass several layers of approval — including from WonderFi shareholders, regulatory agencies, and the courts. Should it go through, the acquisition will likely accelerate Robinhood’s capacity to offer more crypto services to Canadians, possibly including access to its broader trading ecosystem, which merges traditional equities and digital assets under one platform. Source: https://coinpaper.com/9069/robinhood-and-coinbase-expand-into-canada-with-major-crypto-deals