The bank is expanding its cryptocurrency custody and trading services to include USD Coin (USDC), a leading stablecoin whose value is pegged to the US dollar. „This addition will enable BBVA’s institutional clients to speed up their trading operations by enabling them to transfer value more efficiently with blockchain and secure their stablecoins into BBVA’s vault.” – according to the press release.
„BBVA’s institutional and private banking clients in Switzerland, as well as those with a NewGen account, can now manage their USDC funds on the same platform where they handle their traditional investments. They can exchange, custody, or automatically convert USDC in near real-time into euros, dollars, or any other currency.” – the bank explained.
This incorporation also allows BBVA’s institutional clients to manage their operations on cryptocurrency exchanges more efficiently and faster. Investment fund managers and other large companies often use stablecoins, such as USDC, to complete the transactions more quickly. They also provide a way to hedge against the volatility of other cryptocurrencies, by converting assets into stablecoins to preserve value during market fluctuations.
Launched in 2018 by Circle, a global financial technology company, USDC is a stablecoin that enjoys price parity to the U.S. dollar and is powered by blockchain technology. It provides a reliable option for those looking to maintain the value of their assets in the digital environment without the volatility of other crypto-assets. USDC is fully backed by highly liquid cash and cash-equivalent assets, and is redeemable 1:1 for U.S. dollars. USDC enables fast and cost-effective transactions. It’s widely used in decentralized finance (DeFi)and digital payments due to its liquidity and transparency.
Of the top 10 stablecoins by market capitalization, USDC is the only one that is currently compliant with the Markets in Crypto-Assets Regulation, or MiCA, the European Union’s new, comprehensive law governing crypto assets. The USDC reserves are held at regulated financial institutions with published third-party monthly attestations.
This is the third cryptocurrency BBVA has added to its digital asset service in Switzerland. In 2021, within a few months, it launched the service with bitcoin and ether, the two largest by market volume and usage, and the most demanded by investors. In late 2023, it migrated its custody capability to Metaco’s Harmonize platform, which streamlines transactions, follows the highest security standards, and allows connection with other blockchain networks.
„The bank is thus developing a solid offering, pioneering among major European banks, that allows its clients to explore new opportunities to exchange value in the digital environment.” – the bank added.
“We want to offer our private clients a simple access to the tokenized products they are most interested in and cannot access through traditional financial institutions. Meanwhile, our institutional clients need us to provide options to guarantee the assets they manage,” explains Philippe Meyer, Head of Digital Solutions and Blockchain at BBVA in Switzerland. “We will analyze all the crypto assets they are investing in to continue building our offering with further innovative solutions.”
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
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