BBVA, a Spanish bank, announced that it has expanded its crypto custody and trading services in Switzerland to include USD Coin (USDC) for institutional and private banking clients. This update allows clients to trade, hold, or convert USDC into euros, dollars, or other currencies almost instantly. USDC is a stablecoin that is often used by investment fund managers and large corporations to speed up transactions across different cryptocurrency exchanges. The stablecoin also helps mitigate the volatility risk of other cryptocurrencies by allowing assets to be converted into stablecoins, preserving their value during market fluctuations.
The primary advantage of USDC is its direct connection to the USD, ensuring its value remains stable unlike the unpredictable nature of other cryptocurrencies. This stability makes USDC a reliable store of value in the market. Through BBVA, Garanti BBVA Digital Assets offers a service in Türkiye that allows customers to trade, store, and transfer USDC. Clients can also trade Bitcoin, Ether, and AVAX, as well as securely store their Chiliz holdings. BBVA initially introduced Bitcoin and Ether to its digital asset services in Switzerland in 2021, which were in high demand among investors. Later, the bank shifted its custody operations to Metaco’s Harmonize platform by the end of 2023.
Philippe Meyer, Digital Solutions and Blockchain Head at BBVA in Switzerland, stated that the bank aims to offer its private clients easy access to tokenized products they are interested in, but cannot access through traditional financial institutions. Meanwhile, institutional clients need options to guarantee the assets they manage. Switzerland’s regulatory framework fosters blockchain and crypto businesses, leading to the creation of the Distributed Ledger Technology (DLT) Act, which allows the tokenization of securities and rights and makes their trading on blockchain networks more efficient. Switzerland has attracted significant investments in the crypto and blockchain industries, with cities like Zug known as “Crypto Valley” hosting numerous blockchain startups, foundations, and companies. This supportive environment strengthens Switzerland’s reputation for being crypto-friendly with a strong infrastructure.
Overall, BBVA’s expansion of its crypto custody and trading services to include USDC in Switzerland demonstrates the bank’s commitment to providing its clients with access to a wide range of digital assets. The addition of USDC, a stablecoin directly linked to the USD, allows clients to mitigate volatility risk while still participating in the crypto market. Switzerland’s supportive regulatory environment and investments in the crypto industry make it an attractive location for businesses looking to innovate in the blockchain space. Additionally, BBVA’s partnership with Metaco’s Harmonize platform showcases its dedication to offering secure and efficient custody operations for both institutional and private clients.
