- Private banking institution Santander dives into the crypto industry with new service.
- The service will be available exclusively to select account holders.
- Santander Bank is set to broaden investor access to crypto by screening additional assets.
As the interest in cryptocurrency assets surges, investors worldwide are increasingly drawn to the industry and the potentials of the asset class. Traditional financial institutions are becoming active participants, in an effort to leverage the growing momentum.
Against this backdrop, prominent financial institution Santander Private Bank is the latest to join the ranks of crypto trading service providers.
Santander Unveils Bitcoin and Ethereum Trading For Investors
On Monday, November 20, the banking arm of Spanish services provider Banco Santander and international private financial institution, Santander Bank, inaugurated the provision of trading services for cryptocurrency assets.
Clients can buy, sell and hold the supported assets through Santander’s trading service. The bank will employ a regulated custody storage model to safeguard the assets, along with private cryptographic keys in a secure environment.
An internal announcement shared with DailyCoin by a Santander spokesperson confirmed that its clients in Switzerland would be given access to limited Bitcoin and Ether services.
The communication further indicated that Santander’s decision was based on a surge in demand, but reiterated that the bank would not offer advice on the novel asset class.
“"We are offering our clients a service they were demanding from us. We do not advise on crypto trading, but our clients feel safer if they invest and have the custody of their crypto assets with the security and trust of a leading global bank like Santander provides.” Deputy head of Santander private Banking International in Switzerland stated.
Santander’s entry into the crypto industry highlights the unwavering interest of traditional financial institutions in the asset class, despite the turbulent start to 2023 experienced by U.S. crypto-facing banks.
Traditional Financial Institutions Tapping Crypto Benefits
Following the collapse of three crypto-friendly banking institutions, Silicon Valley, Signature, and Silvergate, in the United States earlier this year, the cryptocurrency industry found itself cast as a scapegoat.
The setback has seemingly done little to deter major financial players from recognizing the potential of the growing sector, with international giants boldly embracing the industry in various forms.
On September 27, Hong Kong-based bank HSBC declared its acceptance of cryptocurrencies, including Bitcoin (BTC), Ripple (XRP, Shiba Inu (SHIB) among others for mortgage payments. Going a step further, the firm unveiled a blockchain-based platform for tokenizing gold ownership in November, empowering clients to engage in the trading of digital tokens representing tangible gold bars.
Similarly, on November 10, Switzerland-based investment firm UBS Group rolled out three crypto-linked exchange traded-funds (ETFs). The ETFs included Samsung Bitcoin Futures Active, CSOP Bitcoin Futures, and CSOP Ether Futures ETFs, accessible to investors within Hong Kong.
On the Flipside
- In July 2022, Santander Bank announced the commencement of Bitcoin trading services for its Brazilian user base.
- The addition of Bitcoin and Ethereum trading does not alter the institution’s traditional banking system.
- On November 15, the deadline for the anticipated spot Bitcoin and Ethereum ETF approval was extended by the Securities and Exchange Commission (SEC).
Why This Matters
Santander Private Banking International’s entry into the cryptocurrency industry underscores the growing interest of key traditional finance players in the burgeoning sector. The development will not only provide clients with access to crypto assets but also catalyze crypto adoption on a global scale.
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