BBVA has been reportedly working on making its crypto service debut for months as it has integrated a solution for providing cryptocurrency custody infrastructure called SILO in a move similar to Russia’s Gazprombank.
Spain’s Banco Bilbao Vizcaya Argentaria SA (NYSE: BBVA), the country’s second-largest bank is reportedly set to launch its own crypto services in the nearest possible time. According to a report from Coindesk citing two people familiar with the plans, the bank is set to make its debut in the cryptocurrency trading and custody space once it secures the right regulatory greenlights.
Per one of the sources, Spain’s BBVA bank will begin its cryptocurrency trading and custody services in Switzerland as the Central European country is adjudged to have comprehensive rules governing the issuance and businesses around digital assets, as reportedly set out by the country’s Financial Market Supervisory Authority (FINMA).
Spain’s BBVA will be “launching its Europe-wide crypto initiative from Switzerland,” as noted by one of the sources while both confirmed that “There are still some compliance hurdles so this will not be in December, but I expect they [BBVA] will be live next month.”
Coindesk noted that when its correspondent asked whether the cryptocurrency services planned out by the bank will involve the issuance of tokenized securities, the source noted that the offering s primarily a cryptocurrency offering.
BBVA has been reportedly working on making its crypto service debut for months as it has reportedly integrated a solution for providing cryptocurrency custody infrastructure called SILO in a move similar to Russia’s Gazprombank. The crypto custody solution was designed by Avaloq, a renowned banking software development startup as well as METACO, a Swiss cryptocurrency specialist.
A second source said the project will likely surface “around Christmas,” adding that there are still regulatory issues to iron out. “The project has to pass through several processes to get a green light and become a reality,” they said.
Spain’s BBVA Bank Joins Other Banking Institutions Offering Crypto Services
The move by Spain’s BBVA bank to begin offering cryptocurrency-based services is not uncommon among banking institutions around the world. The massive embrace by these banks to begin providing crypto services particularly trading and custody follows from the massive adoption these cryptocurrencies particularly Bitcoin (BTC) is gaining among both retail and institutional investors.
Refusal to join the train can leave some banks redundant as the focus of investors is shifting away from the more traditional securities to cryptocurrencies as the recognition of Bitcoin as a good hedge against inflation became prominent in the pandemic-laden months.
Back in November, Coinspeaker reported that China Construction Bank Ord Shs A (SHA: 601939) revealed plans to issue offshore bonds tradable in Bitcoin. This is one of the many examples of ways banks are leveraging the surging recognition of digital assets to churn out new products.
In the United States, the Office of the Comptroller of the Currency (OCC) gave national banks the authorization to offer cryptocurrency custody services giving the likes of Goldman Sachs Group Inc (NYSE: GS), and Morgan Stanley (NYSE: MS) the legal backing to offer such services to their clients.