South Africa’s Absa Becomes First Bank on the Continent to Custody Bitcoin: Report
By Mathew Di Salvo
AI summary of the source article
Johannesburg-based Absa has become the first African bank to offer bitcoin custody services, according to reports first published by Bloomberg. Serving institutional clients through its corporate and investment banking unit, the bank plans to custody bitcoin as its primary digital asset while adding others over time, according to head of digital assets Rob Downes. The move aligns with South Africa’s increasingly institutional crypto market, which ranked second in Sub-Saharan Africa with $36.0 billion in on-chain value according to Chainalysis. South Africa's market has been bolstered by regulatory clarity and hundreds of licenses issued to virtual asset service providers.
Why it matters
The development marks the first entry of an African lender into digital asset custody, highlighting the expansion of institutional crypto services supported by local regulatory clarity.
Key facts
- Absa is the first African bank to launch custody services for bitcoin and other digital assets for institutional clients.
- Rob Downes, head of digital assets at Absa's corporate and investment banking unit, confirmed additional digital assets will follow bitcoin.
- South Africa ranked second in Sub-Saharan Africa with $36.0 billion in on-chain value, driven by regulatory clarity and hundreds of VASP licenses.