Canada’s Wealthsimple aims for real-world cryptocurrency use as it looks beyond trading

Canada’s Wealthsimple aims for real-world cryptocurrency use as it looks beyond trading

TORONTO - Canadian online brokerage Wealthsimple wants to chart a future enabling the real-world use of cryptocurrencies rather than simply facilitating trading, but is likely to face unexpected costs and uncertain regulatory terrain along the way.

Launched in 2014 as a stock-trading platform, Wealthsimple currently has C$15 billion ($11.9 billion) in assets. It added cryptocurrency trading in August 2020 with Bitcoin and Ethereum, and has since added more coins, hosted wallets and inward transfer capabilities, and has said it intends to enable withdrawals.

Wealthsimple's first-mover advantage in crypto has helped it to break into a narrow slice of Canada's financial industry not dominated by the 'Big Six' banks.

"We understand that part of the appeal of this asset class (is) to use the asset, not simply invest in them or speculate on them, so we're going to support that," Wealthsimple's Chief Legal Officer Blair Wiley said in an interview. "We’re looking at ... how we can become more nimble, more connected to public blockchains as a key strategic priority."

He declined to provide a timeframe for achieving this, or the investment needed to expand the crypto capabilities of Wealthsimple, 43% owned by Power Corp of Canada.

Cryptocurrencies' uses include as alternatives to fiat currencies; for