What to know:
- Customers of Garanti BBVA Kripto will soon be able to buy and sell cryptocurrencies.
- Bit2Me, the crypto exchange used for trading execution, says that many European banks are edging to offer the same kind of product to their customers in the EU.
- The Markets in Crypto-Assets (MiCA) regulation came in full effect on Dec. 30.
As a seasoned researcher with over two decades of experience in the financial industry, I’ve witnessed the evolution of banking from horse-drawn carriages to digital platforms. The news about BBVA venturing deeper into the crypto ecosystem is an exciting development that reflects the dynamic nature of the financial world.
The partnership between BBVA and Bit2Me signals a potential wave of change in the EU, where banks may soon follow suit in offering cryptocurrency trading services. This is not just a leap for BBVA but a giant step for the entire banking sector that’s been hesitant about embracing the crypto revolution thus far.
The regulatory certainty provided by MiCA and the supportive stance of US President-elect Donald Trump towards crypto have undeniably played a crucial role in this shift. I can’t help but imagine what could have happened if Satoshi Nakamoto ran for office instead!
In all seriousness, the success of U.S. spot bitcoin exchange-traded funds and the growing interest in creating strategic bitcoin reserves by governments around the world are compelling reasons for banks to hop on this crypto bandwagon. It’s no longer a question of ‘if’, but rather ‘when’ and ‘how’.
In the end, it seems that banks can’t ignore the growing demand from customers who want exposure to cryptocurrencies like bitcoin. As a researcher, I find it fascinating to see traditional finance institutions adapt to the digital age. It reminds me of my old cat learning new tricks – slow and steady, but eventually gets there!
The well-known Spanish banking institution, BBVA (Banco Bilbao Vizcaya Argentaria), is further expanding its involvement with the world of cryptocurrency.
Starting from a future date, Garanti BBVA Crypto – a digital asset custody service operated by Turkey’s fifth-largest bank (nearly 86% owned by BBVA as of December 2023) – will expand its offerings to include crypto trading for the public. Notably, Bit2Me, a Spanish crypto exchange established in 2014, has been chosen to function as the bank’s trading hub.
With the MiCA regulation now fully enforced throughout the European Union, the alliance between BBVA and the crypto exchange suggests that there may be even more developments to come in this space, as suggested by Abel Peña, Bit2Me’s Chief Sales Officer.
Peña stated to CoinDesk that he is confident that numerous European banks will begin offering crypto spot trading to their users by 2025. He has connections with over 50 financial institutions, spanning Europe and beyond, and anticipates these services to go live as early as the first quarter of 2025.
In 2023, BBVA managed a staggering $857 billion in assets, placing it as the 43rd largest bank globally and the second-largest within Spain, following Banco Santander. Even though Garanti BBVA Kripto started marketing cryptocurrency trading on its platform since January 2024, the service was initially only rolled out as a trial and wasn’t accessible to the public at large, as stated by Bit2Me.
BBVA started getting involved in the crypto sector in Turkey due to a favorable regulatory climate that enabled it to act ahead of time, according to Peña. Now that MiCA has been fully implemented on December 30, financial institutions like BBVA can now obtain domestic regulatory approval and provide their European clients with access to bitcoin (BTC), ether (ETH), and other cryptocurrencies.
Peña stated that once they receive the go-ahead, they will begin their operations. This is based on the understanding that several of these entities have already become part of our system,” he explained, without revealing the identities of the specific institutions.
As a researcher delving into the dynamics of the banking sector, I’ve found myself pondering over the recent surge of interest in cryptocurrencies. The European Union’s Markets in Crypto-Assets (MiCA) regulatory framework, which offers clarity, has certainly played a role, as stated by Peña. However, it’s also important to consider the influence of the U.S. President-elect Donald Trump, who became an advocate for crypto during his campaign and secured a landslide victory in November. Furthermore, discussions about establishing a strategic bitcoin reserve by the U.S. government have added fuel to this intriguing narrative.
The extraordinary prosperity of U.S. bitcoin exchange-traded funds, amassing a historic $35 billion in investments within just a year, has undoubtedly played a role as well. As stated by Peña, “This is an asset [bitcoin] that numerous users and businesses are keen to invest in. Banks can no longer ignore this trend.
As an analyst, I’m not surprised that BBVA isn’t the only European bank exploring the cryptocurrency space. In fact, Deutsche Bank, a significant German multinational investment bank, has been actively involved in this area. They are developing a rollup on Ethereum using ZKsync technology and have collaborated with Swiss start-up Taurus on crypto custody and tokenization services since 2023.
On the other hand, Société Générale, a French financial services company, has taken its own steps in this field. They’ve established a dedicated crypto arm, SG-FORGE, which recently announced plans to deploy a euro stablecoin on the XRP Ledger (XRPL) network.
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2025-01-02 09:18