EZO OTC: How Canadian Cross-Border MSBs Can Add Stablecoin Settlement Rails Without Taking Custody Risk

Canadian cross-border MSBs face increasing pressure to reduce settlement times, lower FX costs and operate outside traditional banking hours. Stablecoins such as USDC and USDT are rapidly emerging as a settlement layer for international transfers, but accessing institutional-grade stablecoin liquidity in a compliant manner and at transparent rates remains difficult.

EZO’s crypto OTC desk is built to handle high-value purchases, sales and swaps of cryptocurrency in adherence with Canadian regulations. As a money services business (MSB) registered with FINTRAC and Revenu Quebec, and as a payment service provider (PSP) supervised by the Bank of Canada, EZO’s team is well-equipped to guide fellow MSBs navigating the cryptocurrency and stablecoin space for the first time.

Read on to learn more about how cross-border payment money services businesses can collaborate with EZO to provide their clients with a greater variety of payment or currency options, including USDC, while protecting themselves from custody risk.

Unsure about directly adopting crypto as part of your workflow, but interested in joining EZO’s referral partner program? A forthcoming article will explore the details of our cross-border MSB referral program.

In Sum

• Stablecoins like USDC and USDT are increasingly used by Canadian MSBs to modernize cross-border settlement, and EZO provides compliant, non-custodial OTC crypto liquidity as a FINTRAC-registered MSB, Revenu Québec licensee and Bank of Canada–registered PSP.
• EZO supports remittance providers, FX operators and businesses seeking institutional execution, transparent pricing and 24/7 digital asset liquidity.
• Through stablecoin on- and off-ramps, EZO helps reduce settlement delays, lower intermediary banking friction and expand client payment options.
• MSBs integrating crypto must align with FINTRAC virtual currency requirements, PSP obligations under the RPAA and applicable provincial licensing such as Revenu Québec.

Why Choose EZO’s Crypto OTC Desk: Access 24/7 Stablecoin Liquidity as a Remittance Provider

Fully registered and compliant in Canada, EZO’s crypto OTC desk enables your cross-border MSB to acquire and sell cryptocurrency in the most simple manner and at advantageous rates that lower the more you trade, rewarding high-value and long-term partnerships.

We have experience servicing all types of companies in Canada, including cross-border money services businesses like yours. 

Fast and Easy* is a Canadian money services business specializing in cross-border transfers to and from South Africa. Client funds are on-ramped from CAD into USDC stablecoin via EZO. The stablecoins are then converted into ZAR through a licensed local off-ramp partner in South Africa, facilitating compliant fiat payout to recipients. Fast and Easy and their clients are able to benefit from cheaper and faster settlement times outside banking hours.

*This is a fictional example which reflects the reality of many of our MSB and PSP clients.

Like *Fast and Easy, choose EZO to unlock:

• Personalized Service – Our crypto OTC experts are available and responsive to your transaction requests.
• Excellent Fees – Our transparent fee schedule is discussed prior to transacting. No spread, just transparent fees that go down as your volume increases. We reward you by lowering your fees the more you transact with us.
• Compliance and Security First – Our approach prioritizes security and compliance for your peace of  mind.
• Digital Asset Integration – Incorporate cryptocurrency into your services to capture emerging demand and position your business at the forefront of financial innovation.
• Fast Settlement – Receive your purchased digital assets directly into your self-custodial wallet with near-instant settlement, enabling immediate access and operational flexibility.
• Non-Custodial – Maintain full control of your digital assets. Your keys, your coins, at all times.
• Referral Opportunities – Refer clients and business partners alike and earn up to 15% of the fee charged by EZO for each transaction your referrals make.

Operational Model: EZO x Your MSB

What EZO’s Crypto OTC Desk Handles

Following onboarding and completion of compliance review, EZO serves as your institutional liquidity partner. 

EZO executes purchases, sales and swaps of stablecoins like USDC and other cryptocurrencies like ETH and BTC according to your instructions, providing transparent pricing under a pre-agreed fee structure. We source liquidity across vetted venues and maintain relationships with licensed liquidity providers, exchanges and banking partners. This includes ongoing due diligence, exposure management and settlement oversight, reducing the operational and compliance risks associated with fragmented crypto markets.

Rather than your MSB opening and managing accounts across multiple exchanges, negotiating liquidity arrangements or assessing venue risk, EZO centralizes that responsibility. We manage the market access on your behalf.

All trades settle on a non-custodial basis. Purchased digital assets are delivered directly to your designated self-custodial wallet, and sale proceeds are remitted to your bank account. EZO does not maintain custody of your assets. This structure ensures clear regulatory boundaries and avoids ongoing asset safekeeping exposure.

EZO operates as a FINTRAC-registered MSB, a Revenu Québec licensee and a Bank of Canada–registered PSP, maintaining compliance within the scope of our regulated activities.

What Your MSB Handles

Your MSB retains full ownership of the client relationship and the front-end service model.

You remain responsible for onboarding your customers, conducting KYC and source-of-funds verification, and ensuring your internal AML policies reflect virtual currency activity where applicable. Your team communicates directly with customers, determines pricing strategy and applies any client-facing spread or service fee.

Operationally, your MSB collects fiat funds from the customer and sends those funds to EZO for on-ramping in accordance with agreed procedures. You provide clear trade instructions, including asset type, size and destination wallet.

Once the trade is executed, EZO delivers the digital assets to your non-custodial wallet. From there, your MSB coordinates onward transfer to the client’s wallet or designated settlement partner.

Under this structure, your MSB maintains customer ownership and pricing control while avoiding the need to interface directly with crypto exchanges or manage institutional liquidity relationships. The execution and market layer sits with EZO while the client and corridor layer remains with you.

Don’t Want to Handle Crypto? Become an EZO Referral Partner

If your team’s not ready to directly integrate crypto and stablecoins into your MSB, there is still a way you can address growing client demand and even benefit from it by partnering with EZO’s crypto OTC desk.

Onboard your MSB with EZO and join our advantageous referral partner program. When one of your clients asks about crypto and stablecoin acquisition or sale, refer them to our crypto OTC desk. As our referral partner, you earn 15% of our revenue associated with the client’s crypto transactions. 

You’ll learn more about this arrangement in our upcoming article about our FX and Cross-Border MSB Referral Partner Program. In the meantime, contact us at info@ezo.app for more information and to create your crypto OTC account.

What Licensing Is Required for MSBs to Purchase Crypto from EZO and Offer It to Retail Customers in Canada?

FINTRAC Money Services Business Overview

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) requires companies performing money services business activities to register with them. If you are reading this article, you may already be a MSB or plan to register as one. 

In the case of the latter, a pre-registration form, which includes selecting applicable sectors of activities, is required to submit to FINTRAC before proceeding. Becoming registered as a MSB requires incorporating your business, implementing a robust Anti-Money Laundering (AML) & Know-Your-Customer (KYC) compliance program and submitting comprehensive disclosures regarding your operations, management structure and beneficial ownership.

Money services business activities include virtual currency. However, unless additionally registered as a restricted dealer, the buying and selling of cryptocurrency as a service must be conducted strictly on a non-custodial basis. Money services businesses cannot hold clients’ cryptoassets on their behalf.

An in-depth review of the regulatory scene for crypto in Canada, including differences between restricted dealers and MSBs is available on our blog.

While it is important to note our EZO crypto OTC desk experts are not consultants, our team is willing to discuss MSB registration with you and share insights on our own experience registering as a MSB, in the optics of building a long-term relationship together. Reach out at anytime at info@ezo.app for any inquiries and to book a meeting.

MSB Authorized Services

If you are already a MSB, adding cryptocurrency as part of your MSB activities can be done by submitting a Change Form to FINTRAC. FINTRAC will subsequently follow up with your company with the next steps. As different services come with distinct compliance expectations, you will be expected to update your policies, procedures and risk assessment to reflect virtual currency now being a part of your MSB activities.

Payment Service Provider

If you are a cross-border MSB exploring stablecoin settlement or crypto-enabled transfers, you may already be registered or in the process of registering as a Payment Service Provider (PSP) under the Retail Payment Activities Act (RPAA). This framework, overseen by the Bank of Canada, applies to businesses that perform retail payment functions in Canada.

Crypto integration does not remove existing payment obligations. PSP registration focuses on operational risk management, incident reporting and protection of end-user funds. These obligations operate alongside AML and KYC FINTRAC MSB requirements.

Revenu Quebec

Quebec is currently the only province that requires a separate provincial Money Services Business license in addition to FINTRAC registration. Unlike FINTRAC-regulated MSB activities, cryptocurrency is not explicitly listed aside from ATM operations. Nonetheless, other related activities like money remittance, funds transmission or currency exchange may trigger licensing requirements.

If operating in Quebec or serving Quebec residents, you must apply with Revenu Quebec to receive a Money-Services  Business License.

Why Integrate Crypto into Companies in Canada?

From crypto mining giants to more traditional companies, businesses all around Canada and beyond are adopting cryptocurrency like BTC and ETH and stablecoins like USDC and USDT for many reasons:

• Wholesale Inventory Acquisition and Supplier Payments – Settle large invoices efficiently, including with international vendors.
• Building a Crypto Treasury – Diversify corporate reserves and hedge against currency debasement or inflation exposure.
• Cross-Border Payments – Reduce settlement times and lower intermediary banking fees and correspondent charges compared to traditional correspondent banking rails.
• Offering Additional Payment Options to Clients – Attract new customer segments and enhance payment flexibility.
• Faster Settlement and Improved Cash Flow Management – Benefit from near real-time transaction finality.
• Reduced FX Friction – Use digital assets as a bridge for multi-currency transactions.
• Strategic Positioning and Innovation Signaling – Demonstrate forward-looking financial infrastructure to partners and clients.

Who Can Benefit from a Business Account with EZO?

Canadian companies across industries and at every stage already rely on EZO’s crypto OTC desk to access institutional-grade crypto and stablecoin liquidity with zero spread.

• Cross-Border Money Transfer MSBs – EZO provides crypto and stablecoin liquidity and referral partnership opportunities for cross-border transfer MSBs seeking to give their clients the option to choose seamless international stablecoin transfers.
• Foreign Exchange MSBs – Foreign Exchange MSBs can expand their currency offering by partnering with EZO, enabling either direct settlement through their own infrastructure or indirect settlement via referral to EZO’s OTC desk.
• Import & Export Companies – Import & Export companies streamline their processes and cut on FX costs when sending and receiving payments in stablecoins acquired and sold via EZO.
• Traditional Companies – EZO enables companies of all types to access crypto and stablecoin liquidity.
• Many More – Organizations across sectors rely on EZO’s OTC desk for scalable liquidity and seamless execution.

Speak directly with our crypto OTC desk team to evaluate how stablecoin liquidity can play a role in optimizing your payments flow.

We support:

• Buy USDC with CAD;
• Sell USDC for CAD;
• Buy BTC with CAD;
• Sell BTC for CAD;
• Buy ETH with CAD;
• Sell ETH for CAD;
• Swap between USDC, BTC and ETH;
• Contact our crypto OTC desk team for more.

Not ready to integrate crypto directly but still want to expand your offering? Join EZO’s referral partner program. A follow-up article will outline how the referral partner cross-border MSB structure works in greater detail.

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Frequently Asked Questions

Who can open an OTC account with EZO?

Canadian-registered MSBs, FX providers, remittance companies, import/export businesses, and other companies seeking institutional crypto (ETH, BTC) and stablecoins (USDC) liquidity can open an OTC account with EZO. Retail customers or sole proprietorship are additionally eligible.

Does EZO custody client funds or digital assets?

No. EZO operates on a non-custodial basis. Digital assets are delivered directly to your designated wallet.

Can MSBs legally integrate crypto into their services in Canada?

Yes, provided they are properly registered with FINTRAC for virtual currency activities, maintain compliant AML/KYC programs and meet any applicable PSP and provincial licensing requirements.