Wealthsimple: Navigating the Growth of Canada’s First Regulated Crypto–Exchange Platform

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Michael Katchen, chief executive officer and co-founder of Wealthsimple Technologies Inc. (Wealthsimple), made history when his company launched Canada’s first regulated cryptocurrency exchange in 2020. By designing a platform complying with regulations, Wealthsimple provided Canadians with a safer and more secure platform to invest in cryptocurrency, thereby creating a point of differentiation and source of competitive advantage for the company. However, the perceived risks of cryptocurrency-based products meant that Wealthsimple’s pivot into cryptocurrency had not been met with unanimous support, with some industry commentators claiming that Wealthsimple’s strategy to enter cryptocurrency and the higher transaction fees that followed stood in stark contrast to the low-risk investment strategy and principle of wealth democratization upon which Katchen had founded the company. In 2022, with an aim to grow its user base, Wealthsimple had to consider whether to continue to expand in the Canadian cryptocurrency industry. Could it achieve its growth objectives by expanding its crypto offerings, or should it explore alternatives outside the sector?
學習目標
The case is suitable for courses on leveraging information technology, responsible governance, entrepreneurial finance, and technology and humanity in honours business administration, master of business administration, and master of science programs. Working through the case will give students the opportunity to do the following:<ul><li>Understand the technological infrastructure underlying cryptocurrency.</li><li>Learn how technology can be leveraged to advance the social mission of democratizing finance.</li><li>Examine how fintech entrepreneurs bridge the gap between innovation and regulation.</li><li>Explore the emerging fintech industry and regulatory landscape.</li><li>Speculate on the future of the cryptocurrency industry.</li><li>Analyze the future expansion of Wealthsimple in cryptocurrency.</li></ul>
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