Shakepay and RBC push Canadian credit markets toward AI and on-chain models

The shift toward on-chain credit in Canada

Canada’s financial landscape is undergoing a structural transition as both legacy institutions and digital asset firms integrate blockchain and artificial intelligence to modernize credit markets. Within the Canadian ecosystem, two distinct paths are converging: the automation of risk assessment at major banks and the rise of collateralized on-chain lending for retail investors. This evolution follows a broader trend where industry leaders, such as Andre Cronje, argue that decentralized finance is effectively maturing into a broader “on-chain finance” paradigm that bridges the gap between traditional banking and immutable protocols [1].

For Canadians, this shift manifests in new ways to move and borrow value. While traditional mortgage and loan markets have historically relied on slow, manual verification, the entry of AI and real-time blockchain settlement is beginning to collapse these timelines. The implications for domestic liquidity are significant, as investors seek to maintain exposure to digital assets while meeting short-term Canadian dollar obligations.

RBC and the automation of credit risk

At the institutional level, Royal Bank of Canada (RBC) has signaled the industry’s direction by winning national recognition for its AI-driven credit underwriting transformation [2]. By deploying machine learning models to analyze creditworthiness, the bank is attempting to move beyond static credit scores toward more dynamic, predictive data sets. This use of AI in the “back office” of lending is a critical precursor to fully automated on-chain credit, as it establishes the trust and speed required to coordinate economic activity in high-velocity digital environments.

While RBC focuses on the software layer of traditional banking, the underlying data centers supporting these AI workloads are increasingly intertwined with the blockchain sector. Recent reports show that even Bitcoin miners are shifting their business models, with a 13.4 percent reduction in hashrate as they repurpose infrastructure for AI and high-performance computing (HPC) revenue [3]. This convergence suggests that the hardware and software used to secure decentralized networks are now being harvested to power the very AI systems that major Canadian banks use to assess credit risk.

Shakepay introduces Bitcoin-backed lines of credit

Parallel to institutional AI adoption, Montreal-based Shakepay has launched a new product called BLOC (Bitcoin-backed Line of Credit), specifically designed for the Canadian market [4]. This product allows users to borrow Canadian dollars against their Bitcoin holdings without the need to sell the underlying asset [5]. By establishing a Bitcoin-native credit facility, Shakepay is addressing a specific need for domestic investors who wish to avoid triggering capital gains taxes or losing their market position while accessing liquidity [6].

This development aligns with a broader global surge in on-chain lending. For example, Figure Technology Solutions recently reported that its blockchain-based loan marketplace volume reached 4.3 billion dollars in a single quarter, nearly tripling its profit as it scales on-chain credit [7, 8]. In Canada, the emergence of Shakepay’s BLOC indicates that the “revenue fever” and structural adoption noted by analysts like Bitwise CIO Matt Hougan are taking root in the domestic market [9, 10].

Security and regulatory hurdles for automated lending

Despite the growth in on-chain credit, the intersection of AI and blockchain introduces new risks that Canadian regulators and firms must navigate. Recent research into “agentic payments”—where AI systems settle transactions autonomously—found that major platforms, including Coinbase and 14 others, failed critical security tests designed for the agentic economy [11, 12]. These failures highlight the danger of allowing AI models to manage private keys or move funds without robust guardrails.

Furthermore, the hardware layer remains vulnerable. Hardware wallet provider Trezor recently confirmed a data breach affecting nearly 14,000 customers through a third-party shipping partner [13, 14]. For Canadian investors using Bitcoin as collateral for credit, the security of their custody solution is paramount. Any breach that exposes customer metadata can lead to targeted phishing attacks, potentially compromising the assets used to back on-chain loans [15, 16].

The outlook for Canadian on-chain finance

The move toward on-chain credit in Canada is likely to be shaped by ongoing legal battles over banking access. Organizations like the Blockchain Association are currently challenging the power of central banks to deny digital asset firms access to master accounts, arguing that such discretion could be used to squeeze crypto firms out of the financial system [17, 18]. In Canada, the ability of firms like Shakepay to integrate with the traditional clearing system will determine how efficiently Bitcoin-backed credit can be deployed.

As AI agents become more prevalent in economic coordination, the demand for instant, 24/7 settlement will likely grow. While firms like MUFG are testing real-time blockchain settlement for government bonds to improve capital efficiency, Canadian firms are proving that the same principles can be applied to consumer credit [19, 20]. The success of these initiatives will depend on whether they can maintain the trust of users while delivering the speed and efficiency promised by the automation of value.

Sources

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19. https://cointelegraph.com/news/mufg-bring-japanese-government-bond-repo-transactions-onchain?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound
20. https://www.coindesk.com/business/2026/08/13/mufg-to-test-real-time-blockchain-settlement-for-japanese-government-bond-trades