Banking giant BBVA debuts Bitcoin trading and custody for Swiss clients

June 18, 2021 Coin Telegraph

bank

BBVA Switzerland will soon begin offering Bitcoin trading to private banking clients while not providing any advisory services on crypto investments.

Banco Bilbao Vizcaya Argentaria (BBVA) — Spain’s second-largest bank — is set to offer Bitcoin (BTC) trading and custody services in Switzerland.

According to a release issued on Friday, BBVA Switzerland will begin Bitcoin trading for all private banking clients interested in crypto assets from June 21.

This initial crypto trading service isonly for Bitcoin but the bank says it has plans to extend its offering to other cryptocurrencies. However, BBVA says its crypto trading desk will not include any digital asset investment advisory services.

As part of the announcement, BBVA Switzerland revealed that the Bitcoin trading service will form part of the bank’s asset investment catalog for private banking clients. Thus, customers will be able to view the performance of their BTC positions alongside the rest of their portfolios.

According to the statement, this in-app integration will offer simplicity for customers in terms of streamlined data for statement of accounts and tax filing purposes among others. BBVA Switzerland also stated that customers will be able to convert between Bitcoin and fiat currencies automatically to prevent losses due to price volatility.

For BBVA Switzerland CEO Alfonso Gómez, the move represents a melding of quality banking services and innovations in the crypto asset space. “With this innovative offer, BBVA positions itself as a benchmark institution in the adoption of blockchain technology,” the CEO said.

Regarding its decision to first introduce the product in Switzerland, BBVA highlighted the country’s crypto-friendly policies as a major determining factor.

Indeed, some Swiss banks have previously announced crypto trading services for their clients. Back in February, Bordier & Cie, a 170-year-old Swiss financial institution partnered with digital bank Sygnum to offer cryptocurrency trading for assets like Bitcoin, Ether (ETH), and Bitcoin Cash (BCH) among others.

As previously reported by Cointelegraph, Swiss banking giant UBS announced plans to offer limited exposure to crypto investment for some of its wealthy clients.

Back in September 2020, authorities in the country formalized a comprehensive set of laws for crypto and blockchain. Phase one of the new legal framework came into effect at the start of February with part two expected to follow in the summer.

Bank of England Governor Bailey Says Cryptocurrencies Are ‘Dangerous’

May 26, 2021 Bitcoin.com

Bitcoin not on the agenda for HSBC says bank’s CEO

May 25, 2021 Coin Telegraph

bank

HSBC will not be joining the growing list of major banks offering Bitcoin and crypto investment products to customers and clients.

The recent tumultuous price action for cryptocurrencies seems to be providing ample opportunity for popular anti-crypto bank HSBC to double down on its negative stance towards virtual currencies.

Speaking to Reuters on Monday, HSBC CEO Noel Quinn said that the bank was not interested in running a crypto trading desk or offering cryptocurrency-related investment packages to its clients.

Quinn identified volatility as a major reason for the bank’s decision despite the emerging trend of other major financial institutions announcing plans to open up crypto investment avenues for their clients.

Earlier in May, investment banking giant Wells Fargo announced plans to debut a crypto investment product for major clients. Also, other major U.S. banks like Morgan Stanley and Goldman Sachs are in various stages of rolling out institutional-grade Bitcoin funds for their customers.

Earlier in May, the New York Digital Investment Group partnered with fintech outfit Fidelity National Information Services to provide a framework for United States lenders to offer crypto trading services to customers.

Detailing HSBC’s reticence on Bitcoin (BTC) and crypto in general, Quinn opined:

“I view Bitcoin as more of an asset class than a payments vehicle, with very difficult questions about how to value it on the balance sheet of clients because it is so volatile.”

The HSBC CEO also took a dig at stablecoins calling into question the reputation of the issuers as well as questioning the extent to which stablecoins in circulation are backed by structured reserves.

Quinn, however, voiced support for central bank digital currencies stating that CBDCs could simplify cross-border payments.

As previously reported by Cointelegraph, HSBC has a noted history of anti-crypto sentiments with the bank blacklisting MicroStrategy stock on its online retail trading platform. At the time, HSBC revealed that the move was due to MicroStrategy’s massive Bitcoin investment drive.

Earlier in the year, the bank also reportedly blocked customers from repatriating profits from crypto exchange platforms to their HSBC accounts.

Bank of Korea Seeking Technology to Develop Digital Currency

May 25, 2021 Bitcoin.com

Bank of Russia to Launch Digital Ruble Prototype by End of Year

May 20, 2021 Bitcoin.com

State-Owned Swiss Bank Postfinance Launches App Supporting 13 Cryptocurrencies

May 14, 2021 Bitcoin.com

Investment bank Cowen set to offer institutional-grade crypto custody

May 13, 2021 Coin Telegraph

bank

The 103-year-old bank wants to hold crypto for asset managers and hedge funds as Wall Street begins offering cryptocurrency products to institutional clients.

Cowen Inc., an independent American investment bank established over a century ago, is set to become the latest mainstream financial services company to enter the crypto custody business.

According to Bloomberg, Cowen has inked a partnership with Standard Custody and Trust Company. The collaboration will also include a $25 million investment in Standard’s parent company, PolySign Inc., which has Ripple chief technology officer David Schwartz on its board of directors.

According to Cowen, there is a growing demand for crypto exposure among institutional investors, with CEO Jeffrey Solomon stating: “We’re going to be able to help a lot of our institutional clients get over the hump and start trading digital assets in the not-too-distant future.”

Custody remains a major roadblock for institutional entry into the crypto scene, as hedge funds and asset managers are required by law to have client’s assets held by recognized custodial services. Commenting on the issue, Solomon elaborated:

“If you’re an institutional investor with a fiduciary requirement, the bar is extremely high for you to put investments in any asset that does not have a clear chain of custody that you can access at a moment’s notice. Even if you had a view on the asset class, if you can’t demonstrate custody then you can’t trade it.”

In recent times, some U.S. banks have begun to wade into the crypto custody scene. Back in 2019, Fidelity — which manages $4.9 trillion in assets — debuted its cryptocurrency custody product, and as previously reported by Cointelegraph, it has even expanded its coverage to Asia.

Cowen’s $25 million investment is part of a $53 million funding round for PolySign as it moves toward creating products that enable greater institutional adoption of cryptocurrencies. PolySign’s Standard Custody subsidiary also recently secured approval from the New York State Department of Financial Services to operate as a limited-purpose trust company.

Swiss SEBA Bank Dives Into Defi Expanding Its Offering With 3 Tokens

May 5, 2021 Bitcoin.com

Georgia’s central bank is exploring ‘Digital Gel’ CBDC

May 5, 2021 Coin Telegraph

bank

The Republic of Georgia's central bank has invited fintech firms and others to participate in the CBDC project.

The National Bank of Georgia said that it is considering launching a central bank digital currency.

In an announcement today, the central bank hinted at the issuance of a central bank digital currency, or CBDC, in an effort “to enhance efficiencies of the domestic payment system and financial inclusion.” The National Bank of Georgia, or NBG, said it would be inviting fintech firms and other financial institutions to participate in the project, named Digital Gel after the symbol for the country’s fiat currency, the lari.

“CBDC holds the promise to unlock the tremendous value of innovative business models for the benefit of society,” said the announcement. “The introduction of CBDC could increase financial intermediation efficiency, help introduce new financial technologies, facilitate financial inclusion, and reach previously unbanked populations.”

However, the bank mentioned the possibility of risks in the launch of a CBDC in the Republic of Georgia given the “new and potentially disruptive technology.” The NBG said it may conduct extensive testing of the CBDC in a controlled environment to ensure a smooth rollout, but did not provide any details regarding a timeline for launch.

With a population of roughly 4 million and a gross domestic product of approximately $15 billion, a nation like Georgia falls at the smaller end of countries exploring CBDCs. The Bahamas officially rolled out its Sand Dollar central bank digital currency in October, while China has been piloting its digital yuan in select cities prior to a full-scale launch. In the United States, Fortune 500 company Accenture announced this week it would be partnering with the Digital Dollar Foundation to conduct CBDC trials.

bank

Share this video