BBVA Deepens Crypto Custody Partnership with Ripple Amid MiCA-Driven Expansion
Ripple, the US-based blockchain company behind XRP, will extend its crypto custody services to Spain’s Banco Bilbao Vizcaya Argentaria (BBVA), reinforcing the bank’s growing engagement with digital assets. This move follows BBVA’s recent introduction of retail Bitcoin (BTC) and Ether (ETH) trading and custody services.
According to an announcement on Tuesday, BBVA will utilize Ripple’s institutional custody platform to support its expanding digital asset offerings. Francisco Maroto, BBVA’s head of digital assets, emphasized that Ripple’s custody solution meets the stringent standards required to deliver a comprehensive end-to-end custody service directly to clients.
Cassie Craddock, Ripple’s managing director for Europe, highlighted that the European Union’s Markets in Crypto-Assets Regulation (MiCA) has been a significant catalyst for traditional banks like BBVA to pursue crypto initiatives. She noted BBVA’s reputation as one of the region’s most innovative banks, referencing reports that BBVA’s advisers have recommended affluent clients allocate between 3% and 7% of their portfolios to cryptocurrencies.
This collaboration builds on prior partnerships within the BBVA group. At the end of 2023, BBVA’s Swiss division transitioned its crypto custody infrastructure to Ripple, and in 2024, Turkey-based Garanti BBVA also adopted Ripple’s custody services.
MiCA Regulation Spurs European Banks’ Crypto Adoption
The implementation of MiCA has accelerated the entry of traditional financial institutions into the crypto market. Lukas Enzersdorfer-Konrad, deputy CEO of EU-based crypto exchange Bitpanda, told Cointelegraph in April 2024 that MiCA has driven some of Europe’s largest banks to explore cryptocurrency services.
BBVA’s developments align with similar moves by other major banks. Deutsche Bank, Germany’s largest bank, reportedly plans to enable cryptocurrency storage for its clients by 2025. Additionally, Deutsche Börse’s Clearstream is preparing to launch institutional crypto custody and settlement services this year. Earlier in 2024, Boerse Stuttgart Digital Custody became the first German crypto asset service provider to secure a full MiCA license.
Global banking giant Standard Chartered also expanded its crypto offerings in Europe after obtaining a digital asset license in Luxembourg in January.
These trends underscore how regulatory clarity from MiCA is fostering greater integration of cryptocurrencies into established financial systems across Europe.
FinOracleAI — Market View
BBVA’s partnership with Ripple signals growing institutional acceptance of crypto custody solutions in Europe, driven by regulatory frameworks like MiCA. This development is likely to enhance market confidence and encourage further adoption among traditional banks. Key risks include potential regulatory shifts and competition from other custody providers. Investors should monitor how other major European banks follow suit and the evolving regulatory landscape.
Impact: positive
