Italy's Second-Largest Bank Weighs Crypto Custody Expansion

UniCredit, Italy's second-largest bank, is considering expanding into digital asset offerings, including custody, according to reports. The bank is selecting a technology provider to build the infrastructure needed to hold digital assets and facilitate their buying and selling.

Bloomberg reported that UniCredit is looking at tokenized investment products and fixed-income securities, as well as stablecoins and exposure to cryptocurrencies. This move comes as other European banks expand their crypto offerings.

Spain's BBVA was the first to roll out bitcoin trading and custody to all customers via its app, using its own custody infrastructure rather than a third party. Santander's Openbank followed with its own trading service.

Regulation in the European Union, specifically the Markets in Crypto-Assets Regulation (MiCA), has given banks a legal definition, supervisor, and familiar set of obligations to launch crypto services. UniCredit is one of 37 lenders across 15 European countries working together to create a company called Qivalis with the aim of issuing a euro-denominated stablecoin.