South Africa’s Absa Becomes First African Bank to Offer Crypto Custody

South Africa’s Absa Group has become Africa’s first bank to offer digital-asset custody. The service gives institutional clients regulated access to storage and transfers for Bitcoin, Ether, USDC and XRPL assets.

Ad

Ad

Absa Launches Crypto Custody for Institutional Clients

Absa has rolled out its Digital Asset Custody platform in South Africa after receiving regulatory approval. The Johannesburg-based bank initially targets asset managers, non-bank financial institutions and corporate clients. Retail customers are not part of the initial rollout.

The platform allows institutions to hold, manage and transfer digital assets through Absa’s banking infrastructure. Bitcoin currently accounts for the largest share of assets in custody. Absa also supports Ether, USDC and assets on the XRP Ledger.

Absa built the custody platform with Ripple technology to manage digital assets. Its Corporate and Investment Banking division operates the service after the companies previously announced their custody partnership.

Ad

Ad

Absa Eyes Wider Crypto Custody Expansion

Absa plans to support more crypto assets as institutional demand develops. However, the bank has not given a timeline or confirmed which assets it could add next.

“We expect to extend this to other client segments in South Africa in due course,” Rob Downs, head of digital assets at Absa Corporate and Investment Banking, said.

Downs added that Absa is “actively working” to introduce the service in some of its other African markets. Those plans remain subject to regulatory approval in each market.

As earlier reported by CoinGape, major financial institutions have also expanded their digital-asset custody offerings as banks develop infrastructure for institutional crypto holdings.

South Africa Crypto Custody Market Reaches R25.3 Billion

Absa enters the sector as crypto assets held by major South African providers continue to grow. Luno, VALR and Ovex held R25.3 billion, or about $1.5 billion, by the end of 2024.

The South African Reserve Bank reported that the figure had more than doubled from below R10 billion in early 2023. The increase covers assets held by the three licensed providers.

Absa will now compete for institutional assets through its regulated banking infrastructure. Its entry gives South African companies and asset managers another custody option as banks expand their crypto custody infrastructure.