Executive Summary
The Story So Far
Why This Matters
Who Thinks What?
Spanish banking giant Banco Bilbao Vizcaya Argentaria (BBVA) is expanding its partnership with U.S. blockchain firm Ripple, tapping the company to provide institutional custody services for Bitcoin and Ether in Europe. This collaboration aims to power BBVA’s recently launched retail crypto trading and custody offering, aligning with the increasing adoption driven by the European Union’s Markets in Crypto-Assets Regulation (MiCA).
Expanding Institutional Custody
The agreement sees Ripple, known for its XRP cryptocurrency, extending its custody solutions to BBVA, enabling the bank to directly offer an end-to-end custody service to its customers. This move follows BBVA’s recent foray into retail Bitcoin and Ether trading and custody, signaling a growing commitment to digital assets within traditional finance.
Francisco Maroto, BBVA’s head of digital assets, stated that Ripple’s custody service is crucial for meeting the necessary standards required to provide robust end-to-end custody. The integration positions BBVA to enhance its digital asset offerings while ensuring compliance and security.
MiCA Drives Adoption
Cassie Craddock, Ripple’s managing director for the European region, highlighted that MiCA has been a significant catalyst, encouraging European banks like BBVA to advance their crypto initiatives. She praised BBVA as one of the region’s most innovative banks, noting its proactive approach to digital finance.
Craddock’s comments follow recent reports that BBVA advisors had told wealthy clients to allocate between 3% and 7% of their portfolios into cryptocurrencies. This advice underscores the bank’s conviction in the long-term potential of digital assets and its strategic positioning in the evolving market.
A Growing Partnership
This latest agreement builds upon an existing relationship between the two firms, demonstrating a phased integration across the banking group. BBVA Switzerland migrated its crypto custody infrastructure to Ripple’s service in late 2023.
Further extending the collaboration, Turkey-based Garanti BBVA also adopted Ripple’s service earlier in 2024. These previous integrations laid the groundwork for the expanded institutional custody services now being rolled out across Europe.
The expanded partnership between BBVA and Ripple signifies a strategic move by a major European bank to deepen its involvement in the digital asset space, leveraging established blockchain technology for institutional-grade custody. This development reflects the broader trend of traditional financial institutions embracing cryptocurrencies, particularly under the regulatory clarity provided by MiCA.
