Safeguarding, banking and accounting
One integration. Safeguarding, banking and accounting for businesses that hold funds.
Massive Distribution Dynamics Limited (MDD) is an orchestration platform for Canadian money services businesses and other companies that hold third-party funds. Through a single integration, we connect you to a Canadian safeguarding trust company, a custodian bank and a payment services provider, so you can safeguard end-user funds, keep your banking, and grow your business.
A services business
We are a services business. That means we do not just hand you a portal and wish you luck. We help you set up and operate the structure that sits behind your platform, and we keep it working over time.
The big idea
Here is what has changed.
The financial system is going digital, so more businesses than ever now hold other people’s money, and Canada’s Retail Payment Activities Act has just turned safeguarding those funds from good practice into a legal duty. At the same moment, banks have decided that money services businesses are more risk than they are worth, and they are quietly closing the accounts MSBs depend on, to manage the third-party risk the RPAA places on them. That is exactly the window MDD was built for.
In one paragraph
For Canadian MSBs and fund-holding platforms who are tired of fragile banking, refused accountants and the standing threat of debanking, MDD is an orchestration platform that connects you, through a single integration, to a safeguarding trust, a custodian bank, a payment provider and end-user accounting. Unlike assembling those relationships yourself over eighteen months, or relying on safeguarding insurance that leaves the risk on your books, MDD makes you the kind of MSB a bank wants to keep. One integration turns your gravest existential threat into a stable platform for banking and growth.
The flywheel
Each part of the platform makes the next one stronger. Safeguarding builds bank confidence; bank confidence unlocks tier-one banking; clean accounting proves it; debanking risk falls; the business grows, and a larger, safer flow of funds turns the wheel again. That is the flywheel MDD sets in motion:
Why this matters
A short story.
Picture a Canadian payments founder with forty thousand users, real revenue and a term sheet on the table. On an ordinary Tuesday, his bank sends a single letter: sixty days to move every dollar of client funds elsewhere. No reason given. He has done nothing wrong. Under the RPAA, his bank has simply decided the third-party risk is not worth carrying. Now he has two months to replace banking that took two years to win, or the business dies.
What he did in the nine days that followed is the reason his company is still trading today. It is also the exact move MDD now builds in from day one, so that letter never arrives in the first place.
The point
The founders who survive debanking are not the lucky ones. They are the ones who were already safeguarded, already bankable and already reconciled before the letter came. We will show you how to be one of them.
Why MDD for MSBs
Built for the position you are actually in.
Canadian MSBs are technology companies that move other people’s money. That is what makes them valuable, and what makes them hard to bank. You are not a licensed bank, yet you carry real AML, compliance and fiduciary exposure because the funds passing across your platform belong to your end users, not to you.
MDD is built for exactly this position. Instead of separately courting a trust company, a custodian bank, a PSP and an accountant, each with its own onboarding, its own risk team and its own way of saying no, you integrate once with the orchestration platform and reach all of them through a single connection.
- 01
Safeguard end-user funds properly
Hold funds in a Canadian safeguarding trust, the option regulators and banks trust most.
- 02
Reduce the risk of debanking
Move from fragile relationships with small institutions towards a more stable, tier-one banking footing.
- 03
Get the accounting done
End-user fund accounting and reconciliation built for a business that moves third-party money.
- 04
Grow on a stable platform
Spend your time on product and volume, not on renegotiating your banking every year.
The orchestration platform
One integration, not four.
The global financial system is going digital, and the number of businesses that hold funds is rising with it: wallet providers, embedded-finance platforms, marketplaces and payment companies of every kind. Each of them needs safeguarding, banking, payments and reconciliation. Sourcing those pieces one by one is slow, expensive and fragile.
The orchestration platform collapses that work into one integration. MDD is already integrated with the institutions you would otherwise have to approach yourself:
- 01
A Canadian safeguarding trust company
To hold and protect end-user funds in trust.
- 02
A custodian bank
For tier-one custody of the funds you safeguard.
- 03
A payment services provider
To move funds across borders and between accounts.
Your job is to integrate with the platform. Ours is to keep the institutions behind it connected, compliant and available to you.
The problem for MSBs
Debanking.
Most MSBs run their pre-funding and processing accounts with credit unions and small, expensive banks. Those relationships are fragile. When a bank re-assesses its risk appetite, the technology company moving third-party funds is often the first account it closes.
This is not really about you. Banks hold your customers’ deposits, but they also hold responsibility for the compliance and fiduciary risk that flows from you. The Retail Payment Activities Act (RPAA) makes third-party risk the bank’s problem, so banks manage it the simplest way they can, by narrowing who they will hold funds for. For an MSB, losing banking is an existential event, not an inconvenience.
MDD’s answer
Give the bank a reason to say yes. When your end-user funds sit in a Canadian safeguarding trust, are properly accounted for and reconciled, and are custodied at a tier-one institution, you become the kind of MSB a bank wants to keep, not the kind it quietly exits.
Summary of services
What you can put on the platform.
Access to safeguarding trust services
Hold end-user funds in a Canadian safeguarding trust, with a bare trust and access to banking available through the trust company.
02Debanking mitigation
A more stable platform and a path to tier-one banking and payment services.
03End-user accounting and reconciliation
Fund-level accounting that demonstrates your end-user funds are segregated and reconcilable.
04Safeguarding consultancy
Practical help meeting your safeguarding obligations under the RPAA.
05Cross-border payment services
Moving funds across borders through an integrated PSP.
06Acquiring a US sponsor bank
Direct access to decision-makers at US banks to secure a sponsorship for your fintech.
07Cross-border tax structuring
Legitimate structures, including the use of a Barbados subsidiary, to lower tax and cut accounting cost.
Who can help
Who we built this for.
MDD is for Canadian money services businesses and any company that holds funds on behalf of its users: wallet providers, embedded-finance platforms and payment companies among them. If your platform touches other people’s money and your banking feels one review away from disappearing, you are who we built this for.
One integration. Safeguarded, banked, reconciled.
Talk to us about integrating with the orchestration platform, or about any single service in it.