HomeBankingSpanish banking firm BBVA to offer bitcoin trading and custody service

Spanish banking firm BBVA to offer bitcoin trading and custody service

Spanish multinational financial services company BBVA announced this Friday that it was launching a bitcoin trading and custody service for private banking clients in Switzerland from June 21. The bank was testing for over six months with a selected group of users.

The BBVA service comes amid growing wall street interest in bitcoin and other top digital assets. The largest cryptocurrency is seen by wall street as a hedge against inflation as governments and central banks turn on the stimulus taps amid Covid19 impact. It is only few weeks back, El Salvador became the first country to accept bitcoin as a legal tender. In India, the government is expected to recognize cryptocurrency as a digital asset. Since beginning of this year, Morgan Stanley, Goldman Sachs, Bank of New York Mellon, and others have announced plans to provide custody services to their private clients.

January 2021BlackRock filed registration for two funds to invest in Bitcoin
January 2021Visa backed credit card with Bitcoin rewards
February 2021Guggenheim Partners allocated $500 million to invest in the Grayscale Bitcoin Trust
February 2021Tesla invested $1.5 billion in Bitcoin
February 2021Miller Opportunity Trust allowed its Opportunity Fund to buy into the Grayscale Bitcoin Trust
February 2021Mastercard said it will allow merchants to accept Bitcoin over its network
February 2021Bank of New York said it will allow cryptocurrency custody in new product
February 2021BlackRock said it started to “dabble” in Bitcoin
February 2021Square purchased another $170 million in Bitcoin
March 2021Tesla to accept bitcoin as payment (suspended in May)
March 2021Morgan Stanley plans to offer clients access to bitcoin funds
Notable institutional updates in first quarter of 2021

The BBVA service will gradually extend to other cryptocurrencies. It would not offer advice on these types of investments, it said. BBVA Switzerland’s Chief Executive Alfonso Gomez in a statement said that during a gradual roll-out they had detected a “significant desire” among investors for crypto-assets or digital assets to diversify their portfolios despite their volatility and high risk.

Under the service, the BBVA said bitcoins can be converted into euros or any other current currency, and vice versa, automatically, without delays and without the illiquidity. The bank said it was limiting this new bitcoin service to Switzerland because the country has clear regulation and widespread adoption of digital assets. The extension of this service to new countries or other types of customers will depend on whether the markets meet the appropriate conditions in terms of maturity, demand and regulation, a press statement on BBVA website stated.

Kumar manages the tech backend at Crypto Vakil. He intends to work at the intersection of law and technology.

Most Popular

blockchain development company

Recent Comments