Absa Becomes First African Bank to Offer Digital Asset Custody Services

Absa, a Johannesburg-based bank, has become the first bank on the African continent to offer digital asset custody services. The bank received regulatory approval before launching the offering for eligible clients, which initially includes asset managers, non-bank financial institutions, and corporations. Absa's new custody service focuses on the safekeeping, administration, and transfer of digital assets. The bank currently supports four digital assets through its custody infrastructure: Bitcoin, XRP Ledger, Ethereum, and USDC.

The launch of Absa's digital asset custody services comes as South Africa's custody market has grown alongside institutional digital asset activity. The South African Reserve Bank tracks assets held by licensed service providers, which showed custody holdings reached R25.3 billion by the end of 2024, approximately $1.5 billion. The SEC proposed rules covering crypto custody, which addresses registered investment advisers and regulated funds holding crypto assets.

Absa plans to extend the service to other South African client groups and introduce custody services across additional African markets. The bank also intends to add other digital assets to its custody infrastructure as client demand develops. However, each expansion remains subject to the required regulatory approvals.