Crypto Regulation: Absa Secures Regulatory Approval for Digital Asset Custody Services

Key Insights:

• Absa backs crypto regulation in institutional custody of top cryptocurrencies like Bitcoin.
• South Africa’s crypto custody market reached R25.3 billion by end of 2024.
• SEC Proposed Custody Rules Permitting Limited Crypto Self-Custody and State Trust Companies.

Absa has obtained approval for digital asset custody services under South Africa’s growing crypto regulatory framework. The Johannesburg-based bank now offers institutional clients digital asset safekeeping, administration, and transfer services. Its initial clients include asset managers, non-bank financial institutions, and corporations.

Meanwhile, the service currently supports Bitcoin, XRP Ledger, Ethereum, and USDC. The launch makes Absa the first bank on the African continent to offer digital asset custody. The bank is entering a South African custody market estimated at $1.5 billion.

Absa Expands Custody Services Under New Crypto Regulation

Absa’s new custody service focuses initially on institutional clients based in South Africa. The bank received regulatory approval before launching the offering for eligible clients. Its services cover the safekeeping, administration, and transfer of digital assets.

Meanwhile, Absa plans to extend the service to other South African client groups. The bank also intends to introduce custody services across additional African markets.