According to BusinessTech, Absa has become the first bank on the continent to offer digital-asset custody, a service that provides secure safekeeping, administration and transfer of crypto assets for institutional clients.
What digital-asset custody means
Digital-asset custody (the secure storage of cryptocurrencies such as Bitcoin, Ethereum and stablecoins) is traditionally provided by specialised crypto firms. By entering the market, Absa aims to give asset managers, non-bank financial institutions and corporates a bank-backed alternative that benefits from the lender’s existing compliance and risk-management frameworks.
Rob Downes, head of digital assets at Absa’s corporate and investment banking unit, said the bank has received approval from South African regulators for a service that currently supports Bitcoin, XRP Ledger, Ethereum and USDC. He added that Bitcoin is the predominant asset in custody and that the bank is working with clients to add other crypto assets as regulatory clearances are obtained.
The South African Reserve Bank estimates that crypto assets under custody at the nation’s three biggest licensed service providers, Luno, VALR and Ovex, more than doubled to R25.3 billion by the end of 2024, up from under R10 billion at the start of 2023. Globally, the custody market is valued at roughly R15.9 trillion in 2026 and is projected to grow to as much as R73 trillion by 2033.
Absa’s launch is a claim by the bank; independent verification of client uptake and the exact timeline for expansion into other African markets is still pending. If the service gains traction, it could set a precedent for other South African banks to develop similar offerings, potentially widening the pool of institutional capital that can safely engage with digital assets.
For more coverage of banking developments, see our Markets & Finance section.
