One of the leading private banks in the eurozone, BNP Paribas, intends to offer Bitcoin custody services to its clients, according to a press release.
With more than US$506 billion in assets, BNP Paribas Wealth Management is Europe's leading private bank and also has BNP Securities Services, the bank's asset custody service, which holds more than US$13 trillion in assets. under management.
French bank giant BNP Paribas is now taking a big step into the crypto market, offering Bitcoin custody to its customers through a partnership with a Swiss digital asset custodian.
The growth in cryptocurrency adoption is beneficial for the entire industry. However, the crypto community has been concerned that many large banks and institutions provide indirect custody. That is, they sell their customers the idea that they own cryptocurrencies when in fact they are selling collateralized versions of these financial instruments, which can cause market instability.
With yet another important financial institution emphasizing and bringing credibility to the crypto sector by offering custody services, the trend is to start seeing a new series of announcements coming from competing institutions. Other large banks that do not adapt to the progress of the financial system may lose customers to those who are doing a better service.