It was apparently the rumor of the week: BNP Paribas would start cryptocurrency custody. However, the banking group has just clarified: it will offer custodial services for digital assets, but not cryptocurrencies as such. What difference does it make?
BNP introduces custody of digital assets
A press release from BNP Paribas this week clarified this Future Wealth Custody Services. The banking group has actually signed partnerships with METACO and Fireblocks. The latter are considered benchmarks in the cryptocurrency sector and have helped several large companies to integrate these new technologies.
Still, BNP Paribas’ entry into the broader blockchain asset custody sector is very cautious. As stated in the press release, the bank will offer to hold tokenized digital assets on behalf of its clients, but not cryptocurrencies as such :
“The first step for BNP Paribas will be to use the Fireblocks solution in its ongoing experiments related to settlement and the custody of regulated security tokens.»
👉 To go further – Security Token, Equity Token and Utility Token: Comparison
The stock exchange that has the wind in its sails⭐
5% discount on your fees with this button
The bank is excluding cryptocurrencies for the time being
This means that the bank wants to start custody of “traditional” securities, which will be available in a tokenized version on the blockchain. The keyword of this initiative is of course “regulated”. BNP Paribas intends to start offering its services when it deems it possible that the regulatory framework is robust enoughwhich is currently not the case.
A distinction that Wayne Hughes, Head of Digital Assets at BNP Paribas Securities Services, highlights in the press release, reminding that the bank won’t stop there:
“These partnerships represent a new step for us, enabling us to build a multi-asset, multi-vendor platform that […] will offer full connectivity between traditional and digital assets.»
We can therefore see this initiative as a first step for the bank. Although it marks its distances very clearly with cryptocurrencies, the use of industry leaders such as Fireblocks and METACO is not irrelevant. We will therefore monitor the Bank’s next initiatives in this area.
👉 On the same subject – BNP Paribas is partnering with EDF ENR to tokenize a bond to finance a sustainable energy project
published by Editions Larousse
Source: BNP Paribas, press release
Receive crypto news roundup every Sunday 👌 And that’s it.