ATB Financial Supports Cryptocurrency in Canada While Big Banks Stay Away
Date: 2025-02-07 Author: Henry Casey Categories: BUSINESS
Canadian crypto companies are facing two opposing banking approaches: ATB Financial, which openly supports Bitcoin and Ethereum-related businesses, and the country’s largest banks, which continue to distance themselves from the digital asset industry.
According to Bloomberg, ATB Financial, a government-owned bank in Alberta, has become an important partner for crypto firms in Canada while other major banks in the country are slow to provide them with financial services. ATB’s policies have helped turn Alberta into a burgeoning hub for blockchain companies. The local government aims to attract $3.5 billion to the region’s economy by 2030 through the development of cryptocurrency and tech initiatives.
ATB recorded $28.3 billion in deposits as of the end of 2024 and has been supporting the crypto industry for more than six years. During the market’s rapid growth in 2021, many companies moved to Alberta specifically for the opportunity to work with this bank.
However, ATB is still a relatively small player compared to Canada’s six largest banks, which control more than 90% of all regulated assets in the country. These financial giants avoid working with crypto companies, citing compliance issues, legal uncertainty, and the potential risks of digital assets. The FTX crash in late 2022 only increased their caution.
Since then, Canadian regulators have tightened their grip on the industry. In August 2023, the Canadian Securities Authority and the Canadian Investment Regulatory Authority required crypto platforms to register as investment dealers. However, even with clear rules in place, large banks have been slow to change their policies and remain closed to crypto companies.
As Darcy Daubaras, CFO of mining company Hive Digital Technologies, noted:
"Even with increased regulation, many of Canada's largest banks remain highly cautious about cryptocurrencies."
The situation in Canada contrasts with recent changes in the United States, where banks have been under pressure from authorities but have not been as cautious as their Canadian counterparts.
Since Donald Trump's return to the White House in January 2025, his administration has taken a more lenient stance toward the crypto industry, opening up banking services to U.S. companies. However, in Canada, the banking sector remains unchanged, continuing to keep digital assets at a distance.
The situation has also been affected by diplomatic relations between Canada and the United States. On February 1, Trump imposed tariffs on Canadian goods, which triggered a wave of sell-offs in financial markets, including cryptocurrencies. Bitcoin and Ethereum have fallen sharply in price. However, after Canadian Prime Minister Justin Trudeau secured a temporary 30-day tariff suspension on February 3, markets stabilized.
