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ZEC $1,370 Absa becomes first African bank to offer crypto custody to institutions
Absa Group opened a digital-asset custody platform in South Africa for asset managers, non-bank financial institutions and corporates.
Key takeaways
- First in Africa. Absa says it is the first African bank to offer regulated digital-asset custody directly to institutional clients.
- R25.3 billion held. Luno, VALR and Ovex held R25.3 billion, or about $1.5 billion, in digital assets by the end of 2024.
- Up from R10 billion. The South African Reserve Bank said that total more than doubled from below R10 billion in early 2023.
What happened
Absa Group has launched a digital-asset custody service in South Africa, becoming the first bank in Africa to offer regulated crypto custody directly to institutional clients. The service runs under the bank's Corporate and Investment Banking division and was built with Ripple technology.
The platform supports Bitcoin, Ether, USDC and XRP Ledger assets. Absa says Bitcoin accounts for the largest share of assets in custody. Institutions can hold, manage and transfer digital assets through the bank's banking infrastructure.
The first clients are asset managers, corporate clients and non-bank financial institutions. Retail customers are not part of the initial rollout. Absa also provides administration, safekeeping and transfer services.
Why it matters
The launch gives South African companies and asset managers a custody option inside a regulated bank, alongside standalone crypto providers. Absa says it is the first African bank to offer this service.
Absa plans to widen the service. Rob Downs, head of digital assets at Absa Corporate and Investment Banking, said the bank expects to extend it to other client segments in South Africa in due course. He added that Absa is actively working to bring the service to some of its other African markets, subject to regulatory approval in each market.
What the data shows
The South African Reserve Bank reported that Luno, VALR and Ovex held R25.3 billion in digital assets by the end of 2024, about $1.5 billion.
The same data shows the total more than doubled from below R10 billion in early 2023, the Reserve Bank said. The increase covers assets held by the three licensed providers.
What is still unclear
- Absa has not said when it will add more crypto assets or which ones it could add next.
- Expansion into other African markets depends on regulatory approval in each market.
- Retail customers are outside the first phase of the rollout.
Questions readers ask
Which crypto assets does Absa custody?
The platform supports Bitcoin, Ether, USDC and XRP Ledger assets, and Absa plans to add more. Bitcoin accounts for the largest share of assets in custody.
Who can use Absa's crypto custody service?
The bank initially targets asset managers, non-bank financial institutions and corporate clients. Retail customers are not part of the initial rollout.
How large is South Africa's crypto custody market?
Luno, VALR and Ovex held R25.3 billion, or about $1.5 billion, by the end of 2024, according to the South African Reserve Bank.
Which technology does Absa use for custody?
Absa built the custody platform with Ripple technology to manage digital assets.
