Absa Launches Africa’s First Bank-Led Digital-Asset Custody Service
Absa Group has entered Africa’s institutional crypto market, becoming the continent’s first bank to offer digital-asset custody. The Johannesburg-based lender is targeting a market that reached about $1.5 billion in South Africa, according to Bloomberg.
The service provides institutional clients with secure safekeeping, administration and transfer services for digital assets. Absa currently targets asset managers, non-bank financial institutions and corporate clients.
Institutional Crypto Custody Takes Hold
Absa received approval from South African regulators before launching the service. The platform currently supports Bitcoin, XRP Ledger, Ethereum and USD Coin, while the bank plans to add more digital assets as demand develops.
Rob Downes, head of digital assets at Absa’s corporate and investment banking unit, said Bitcoin currently represents the predominant asset in custody. He added that the bank is working with clients that want additional crypto assets supported.
The service focuses on custody rather than retail cryptocurrency trading. It gives institutional investors a regulated banking channel for holding and transferring digital assets.
South Africa’s Growing Crypto Market
The launch comes as South Africa’s digital-asset custody market expands. The South African Reserve Bank estimates that assets held by the country’s three largest licensed crypto providers, Luno, VALR and Ovex, more than doubled to 25.3 billion rand, or about $1.5 billion, by the end of 2024.
That figure compares with less than 10 billion rand at the start of 2023. The growth highlights increasing demand for infrastructure that can support institutional participation in digital assets.
Absa plans to extend the custody service to additional client groups in South Africa. Furthermore, the bank is exploring expansion into other African markets, subject to regulatory approvals.
The move also builds on Absa’s partnership with Ripple, which provides the technology supporting its digital-asset custody offering. As banks expand into blockchain-based financial services, custody has become a key infrastructure layer for institutional adoption.
