
Crypto Banking Update October 2024
Oxido Solutions views the growing adoption of cryptocurrency by banks as a key signal for the future of the industry. While banks were initially hesitant about crypto, recent months have seen a rapid shift. More financial institutions are now offering crypto investment and trading services, a trend that aligns with our mission as a provider of trading bot solutions for institutional players. Here’s a summary of the latest most important crypto banking developments.
🇸🇬 Singapore’s DBS Bank to Launch Bitcoin and Ethereum Options Trading
DBS, Singapore’s largest bank, is launching Bitcoin and Ethereum options trading and structured notes for institutional investors, starting in Q4 2024. The new financial products will provide institutional clients with exposure to the crypto market while mitigating risks through structured notes and options contracts. DBS has steadily expanded its crypto offerings since 2022, integrating spot crypto trading into its banking app for accredited clients. This move further solidifies DBS’s role as a key player in Asia’s crypto banking space.
🇩🇪 Commerzbank Partners with Deutsche Börse’s Crypto Finance for Institutional Services
Commerzbank, one of Germany’s leading financial institutions, has partnered with Deutsche Börse subsidiary Crypto Finance to offer Bitcoin and Ether custody and trading services to its corporate clients. The collaboration ensures that Commerzbank’s clients have secure, regulated access to digital assets, marking a significant step in expanding institutional crypto services in Europe.
🌐 Visa Launches Blockchain Platform for Banks to Issue Fiat-Backed Tokens
Visa introduced the Visa Tokenized Asset Platform (VTAP), a new blockchain-based platform that enables banks to issue, burn, and transfer fiat-backed tokens. The platform aims to bridge traditional banking and blockchain, with BBVA, Spain’s second-largest bank, set to pilot the system in 2025. VTAP’s programmability will allow banks to automate processes like payments and credit lines using smart contracts, with the platform initially focused on tokenized assets on the Ethereum blockchain.
🇯🇵 SBI Partners with 21X to List Digital Assets
SBI DM, a subsidiary of Japan’s SBI, has partnered with German firm 21X to list digital assets on its distributed ledger technology (DLT) platform. This partnership will facilitate the listing of tokenized securities in Europe, with plans to expand into China and Thailand. SBI aims to leverage DLT to improve asset management, supporting the tokenization and trading of securities across multiple regions.
🇹🇷 Garanti BBVA Expands Crypto Services, Adds XRP
Turkey’s second-largest private bank, Garanti BBVA, has expanded its crypto mobile app offering to include XRP. The bank now supports several cryptocurrencies, including Bitcoin, Ethereum, and stablecoins, reflecting the growing interest in digital asset trading among Turkish consumers.
🇺🇸 BNY Mellon Pursues Large-Scale Crypto Custody for Institutional Clients
BNY Mellon, one of the world’s largest custodian banks, is preparing to offer large-scale Bitcoin and Ether custody services for institutional clients, specifically exchange-traded products (ETPs). The bank is working closely with regulators to expand its crypto custody services, which are expected to significantly enhance its position in the digital asset sector. With over $50 trillion in assets under management, BNY Mellon is poised to become a leader in institutional crypto custody.
🇭🇰 ZA Bank Becomes First Digital-Only Bank in Hong Kong Approved for Crypto Trading
ZA Bank, Hong Kong’s largest virtual bank, became the first digital-only bank to receive regulatory approval for cryptocurrency trading services. This development allows ZA Bank to offer regulated crypto trading in Hong Kong, aligning with the city’s broader goal of becoming a global hub for digital assets. ZA Bank’s entry into the crypto space is seen as a major step forward for virtual banks in Asia.
🇦🇺 ANZ Joins Singapore’s Digital Asset Interoperability Project
ANZ Bank has joined the Monetary Authority of Singapore’s Project Guardian to explore the digitization of financial markets through tokenized assets. Partnering with Chainlink Labs, ANZ aims to contribute to developing a secure and efficient ecosystem for exchanging tokenized assets like commercial paper, with a focus on improving liquidity across financial markets in the region.
🇹🇭 Kasikornbank to Launch Thailand’s First Licensed Digital Asset Custodian
Kasikornbank, one of Thailand’s largest financial institutions, announced plans to launch Orbix Custodian in 2025, making it the country’s first licensed digital asset custodian. This service will provide secure storage solutions for digital assets, designed to enhance investor confidence and help protect against the risks associated with the growing crypto market in Thailand.
🇪🇸 BBVA to Launch Euro-Based Stablecoin by 2025
BBVA, Spain’s second-largest bank, is developing a Euro-based stablecoin in partnership with Visa, set to launch in 2025. The stablecoin will act as a settlement layer on exchanges and tokenized asset markets, positioning BBVA to compete in the $172 billion stablecoin market. This move also reflects the increasing role of traditional financial institutions in the digital asset space.
🌍 Solana Gains Ground on Ethereum in the Financial Sector
Swiss crypto bank Sygnum released a report highlighting Solana as a significant challenger to Ethereum in the financial sector. Solana’s high transaction speed and low fees have made it an attractive option for financial institutions, leading to major partnerships with companies like Visa and Franklin Templeton. This report underscores Solana’s growing prominence as a viable alternative to Ethereum, particularly for institutional applications.
🇵🇱 Europe Crypto Roundup: Poland’s Bank Pekao Tokenizes Historic Artworks
Poland’s second-largest bank, Bank Pekao, has partnered with Aleph Zero to tokenize some of the country’s most famous artworks. The project, called Archiv3, uses NFTs to store digital replicas of historic masterpieces on Aleph Zero’s blockchain. The digital replicas will be safely stored in the Arctic World Archive for up to 1,000 years, blending blockchain technology with the preservation of cultural heritage.
Stay tuned for next month’s Crypto Banking Update to keep up with the latest trends in the world of crypto banking.