Spain’s Second Largest Bank Launches Crypto Services.
Spain’s second-largest bank with assets of about $ 840 billion, BBVA is poised to enter cryptocurrency trading and custody, according to two people familiar with the plans.
What’s in the Plans?
A source said the Spanish bank will start offering crypto from Switzerland. Switzerland has relatively comprehensive guidelines on digital assets set by the country’s Financial Market Supervisory Authority (FINMA).A source familiar with the plans said BBVA is “launching its European-wide crypto initiative from Switzerland” and added:
“There are still some compliance issues, so the development will not happen in December. However, I expect [BBVA] to make the announcement next month. “When asked if BBVA has built its solution primarily to deal with tokenized securities and the like, the source said, “It’s a cryptocurrency offer.”
Integrated with the Bank of Russia?
It is said that BBVA will use the same custody solution for digital assets called SILO, which Russia’s Gazprombank has also integrated. (Gazprombank is already live with a crypto offer in Switzerland.)
According to the source, BBVA began integrating the SILO custody platform built about six months ago by core banking software provider Avaloq and Swiss crypto experts METACO. METACO is also known to work with Standard Chartered based in London on a corporate storage solution.A second source said the project will likely come up in the “Christmas time” and added that there are legal issues that need to be fixed.
“In order to give the green light and make it a reality, the project needs to go through several processes.”
Time Has Changed
BBVA is no stranger to crypto innovation. It was among the first financial institutions to combine public and private blockchains in a live transaction in July 2018.However, this latest move by the bank shows how much the market has developed.
In 2018, BBVA had to be careful and use a test net because European banks were prohibited from holding Ethereum.In Singapore, another crypto innovation hub, DBS Bank confirmed it plans to enter the digital asset space as well in October.