Spanish banking giant Banco Bilbao Vizcaya Argentaria (BBVA) is intensifying its foray into the cryptocurrency ecosystem. Garanti BBVA Kripto, a crypto custody platform operated by Garanti BBVA — Turkey’s fifth largest bank, which as of December 2023 was almost 86% owned by BBVA — will soon provide crypto trading services to the general public.
Bit2Me, a crypto exchange founded in Spain in 2014, will be used as the bank’s trading execution center. This move is seen as a significant development given that the Markets in Crypto-Assets (MiCA) regulation has come into effect across the European Union. The partnership between BBVA and Bit2Me signals that more banks are likely to follow suit.
According to Abel Peña, Bit2Me’s chief sales officer, the next year will see many banks across Europe offering crypto spot trading services to their users. "I believe in 2025 we are going to see so many banks across Europe offering crypto spot trading to their users," Peña told CoinDesk. "We are in very close contact with more than 50 financial institutions, with banks all across Europe and internationally, and they will start launching their services in the first quarter of 2025."
BBVA held $857 billion in assets in 2023, making it the 43rd largest bank in the world at the time. The second biggest bank in Spain after Banco Santander. While Garanti BBVA Kripto has already been advertising crypto trading services on its website since January 2024, the product was only offered as a pilot and wasn’t available for the general public, according to Bit2Me.
BBVA began embracing the cryptocurrency industry in Turkey because the regulatory environment allowed it to move earlier. Since MiCA finished rolling out on Dec. 30, financial institutions such as BBVA will now be able to secure approval from domestic regulators and offer exposure to bitcoin (BTC), ether (ETH) and other cryptocurrencies to their European customers.
"As soon as they have the green light, they will start," Peña said. "This is from the knowledge that many of them are already integrated with us," he added, though he declined to disclose the names of the institutions.
The banking sector’s sudden enthusiasm for crypto can be attributed to several factors. The regulatory certainty provided by MiCA played a part, as well as U.S. President-elect Donald Trump’s vocal support for cryptocurrency during his campaign. Not to mention the various ideas floating around to get the U.S. government to create a strategic bitcoin reserve.
The tremendous success of the U.S. spot bitcoin exchange-traded funds, which have raked in a record $35 billion in inflows in less than a year, has certainly contributed to this trend. "We’re talking about an asset [bitcoin] that many users and companies want to gain exposure to. This is something that banks cannot deny anymore," Peña said.
BBVA isn’t the first European bank to dip its toes into crypto. Deutsche Bank, Germany’s biggest multinational investment bank, is building a rollup on Ethereum using ZKsync technology and has been working on crypto custody and tokenization services with Swiss start-up Taurus since 2023, among other things. French financial services company Société Générale, for its part, has its own crypto arm, called SG-FORGE, which recently announced it will deploy its own euro stablecoin to the XRP Ledger (XRPL) network.
The move towards mainstream adoption of cryptocurrency is gaining momentum, with more banks and financial institutions entering the space. The partnership between BBVA and Bit2Me signals that this trend will continue in 2025.
BBVA’s foray into crypto trading services is a significant development, given its large asset base and market presence. The bank’s decision to offer crypto trading services to the general public will provide a convenient and secure way for customers to gain exposure to cryptocurrency.
The regulatory environment has played a crucial role in facilitating this move. MiCA regulation has provided clarity on how banks can operate in the crypto space, allowing them to offer services to their customers.
Bit2Me’s chief sales officer, Abel Peña, believes that 2025 will see many banks across Europe offering crypto spot trading services to their users. He estimates that over 50 financial institutions are already integrated with Bit2Me and are ready to launch their services in the first quarter of 2025.
The success of U.S. spot bitcoin exchange-traded funds has also contributed to the trend towards mainstream adoption of cryptocurrency. These funds have raked in a record $35 billion in inflows in less than a year, demonstrating the growing interest in crypto assets among investors.
BBVA’s entry into the crypto space is not an isolated incident. Several other European banks are already exploring or have launched their own crypto-related services. Deutsche Bank, for example, is building a rollup on Ethereum using ZKsync technology and has been working on crypto custody and tokenization services with Swiss start-up Taurus since 2023.
French financial services company Société Générale also has its own crypto arm, called SG-FORGE, which recently announced it will deploy its own euro stablecoin to the XRP Ledger (XRPL) network. This move demonstrates the growing interest in cryptocurrency among traditional financial institutions.
The trend towards mainstream adoption of cryptocurrency is driven by several factors. The regulatory certainty provided by MiCA has allowed banks to operate in the crypto space with confidence. Additionally, the success of U.S. spot bitcoin exchange-traded funds has demonstrated the growing interest in crypto assets among investors.
BBVA’s decision to offer crypto trading services to the general public will provide a convenient and secure way for customers to gain exposure to cryptocurrency. The bank’s large asset base and market presence make it an attractive partner for Bit2Me, which provides the necessary infrastructure for crypto trading services.
In conclusion, BBVA’s entry into the crypto space is a significant development in the trend towards mainstream adoption of cryptocurrency. The partnership between BBVA and Bit2Me signals that more banks will follow suit, offering crypto spot trading services to their users.