BBVA adds USDC custody and trading services for its Switzerland clients

Spain’s multinational banking and financial services company Banco Bilbao Vizcaya Argentaria, SA, has expanded its digital asset services by adding USD Coin (USDC) for its institutional and private banking clients in Switzerland.

This move follows the successful integration of Bitcoin and Ether into its crypto offerings.

The bank’s addition of USDC aims to provide faster transactions, improved security, and better risk management, positioning BBVA as a leader in the crypto-financial sector across Europe.

BBVA aims to provide a stable crypto solution

BBVA’s decision to introduce USDC marks a significant step in expanding its crypto portfolio. USDC, a stablecoin directly tied to the US dollar, provides a solution to the volatility often associated with cryptocurrencies like Bitcoin and Ether.

This stable value is especially attractive for institutional and private clients in managing risk during market fluctuations. USDC allows clients to trade, hold, and convert the stablecoin into various currencies such as euros and dollars.

By facilitating faster transactions and reducing exposure to crypto price swings, BBVA meets the needs of its clients who demand security and efficiency.

Philippe Meyer, Head of Digital Solutions and Blockchain at BBVA in Switzerland, emphasized the bank’s commitment to offering easy access to tokenized products, noting the high demand for crypto services in the country.

BBVA’s expansion in Switzerland

Switzerland’s crypto-friendly regulatory environment has played a key role in attracting major investments in blockchain and digital assets.

The country’s Distributed Ledger Technology (DLT) Act, which allows the tokenization of securities and assets, has fostered innovation and efficiency in blockchain transactions.

Zug, known as “Crypto Valley,” has emerged as a hub for blockchain startups, foundations, and crypto companies.

BBVA’s expansion in Switzerland aligns with the country’s forward-thinking policies, further embedding itself in the growing blockchain landscape.

The bank had already integrated Bitcoin and Ether into its offerings in 2021, and the recent addition of USDC is a logical next step.

BBVA also migrated its crypto custody operations to Metaco’s Harmonize platform in 2023, ensuring higher security and scalability for digital asset management.

BBVA targeting Banco Sabadell in a hostile takeover bid

BBVA’s move to expand its crypto services comes just after a major milestone in its European growth strategy.

The bank recently announced that it had secured approval from the European Central Bank (ECB) for its takeover bid of Banco Sabadell, a €12.23 billion deal aimed at strengthening BBVA’s position in European banking.

However, the bid still requires clearance from Spain’s antitrust regulator CNMC and stock market supervisor.

BBVA Chair Carlos Torres Vila described the ECB’s approval as a significant milestone in creating a stronger financial entity, with additional lending capacity of up to €5 billion per year.

Despite potential benefits such as improved competitiveness and profitability, the bid has faced opposition from the Spanish government, citing concerns over job losses, market monopoly, and its impact on regions like Catalonia.

While the Swiss crypto expansion is viewed as a strategic effort to strengthen BBVA’s financial services portfolio, the bank is also focused on merging its operations with Banco Sabadell, potentially accelerating European banking consolidation.

Labour unions, however, are seeking written guarantees to protect jobs as the merger continues to face scrutiny.

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