BBVA, one of the leading European banks has rolled out a new service that will allow customers to trade and hold digital assets. The bank has tested the service with a selected group of users for six months and now BBVA Switzerland makes this service available to all its private banking clients.
BBVA is limiting this new crypto service to Switzerland as it has “an ecosystem where there is clear regulation and widespread adoption of these digital assets”. BBVA has a wholly-owned subsidiary in that market, dedicated to international private banking services. The bank plans to expand this service to more countries and customers based on demand.
Alicia Pertusa, head of client solutions strategy at BBVA said, “Digital assets have enormous potential to transform the way value and information are exchanged through blockchain technology. Financial institutions, in collaboration with supervisors, can play a relevant role in the integration of digital assets in current markets and infrastructures”.
This initiative comes at a time when several banks are taking major steps to implement cryptocurrencies as part of their businesses.
BBVA Switzerland allows users to manage bitcoin transactions and have deposits in cryptocurrency
Standard Chartered plans to establish a UK-based cryptocurrency brokerage for institutional and corporate clients in the UK and Europe. The bank will only deal with bitcoin transactions and accounts as it is the most accepted cryptocurrency in the market. However, it plans to expand its services for other digital currencies as well.
Alfonso Gómez, CEO at BBVA Switzerland said, “We are bringing the quality of banking service to the fledgling world of crypto assets. With this innovative offer, BBVA positions itself as a benchmark institution in the adoption of blockchain technology. Over the coming months, we will continue to enhance and expand the digital asset offering”.
He said, “This gradual roll-out has allowed BBVA Switzerland to test the service operations, strengthen security and detect if there is a significant desire among investors for crypto-assets or digital assets to diversify their portfolios, despite the volatility and high risk”.
This new service is BBVA’s response to the increasing investor demand. It provides innovative market solutions where clients can invest and combine both digital and traditional financial assets into one portfolio. The new service will be integrated into its app where customers can view their crypto investments along with the rest of their funds and assets.
BBVA will not offer any advisory services for its crypto market. The bank will provide the “highest security standards available in the market” as it has spent six months trialing the service before its launch.
BBVA combined various crypto exchanges for the service to ensure that bitcoins can be easily converted to euros or any other currency and vice versa. The bank said the payments will occur without delays and liquidity that affects other digital wallets.