Ripple has expanded its European footprint by joining forces with Spanish banking giant BBVA to introduce a digital asset custody service.

Announced on Sept. 9, the initiative extends Ripple’s institutional custody platform into Spain, giving BBVA the tools to store and manage cryptocurrencies and tokenized assets securely.

BBVA can scale its digital asset offering by deploying Ripple’s custody technology while staying within strict regulatory and security standards. The service positions the bank to meet rising demand from customers who want direct access to crypto without relying on third-party intermediaries.

This move comes as BBVA rolls out retail services for Bitcoin and Ethereum trading and custody in Spain. The bank’s customers can now buy, sell, and hold the two top cryptocurrencies directly through its mobile application.

BBVA said it has disclosed the new retail offering to Spain’s National Securities Market Commission (CNMV).

The bank stressed that all services are designed to comply with the EU’s new Markets in Crypto-Assets (MiCA) law, meaning customers initiate transactions themselves through the app.

MiCA compliance

Ripple’s European managing director, Cassie Craddock, said these developments reflect the market impact of MiCA among traditional European banks. With MiCA now in place, she explained, banks across the bloc feel more confident about launching digital asset services that customers have requested.

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BBVA executives echoed this sentiment, while adding that the partnership allows the bank to expand its end-to-end crypto services

Francisco Maroto, who leads BBVA’s digital asset unit, noted that Ripple’s custody system offers the operational reliability and security needed to build customer trust.

He added:

“Through this agreement we can deliver on our goal of supporting our customers to explore digital assets, backed by the strength and security of a bank like BBVA.”

This collaboration follows earlier projects between Ripple and BBVA in Turkey and Switzerland.

Notably, BBVA’s Switzerland had previously collaborated with Ripple-owned Metaco to build its digital asset operations in 2023.

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Wall Street giant Citigroup is weighing plans to offer cryptocurrency custody and payment services, aiming to capitalize on a market bolstered by Trump-era regulatory approvals and pro-industry legislation.

Biswarup Chatterjee, a Citigroup executive, told Reuters that the bank’s initial focus would likely be custody services for “high-quality assets backing stablecoins.”

Chatterjee works within Citigroup’s services division, which manages treasury, payments, cash management and other enterprise solutions for large corporations.

The bank is also exploring custody offerings for crypto-linked exchange-traded products, which could include Bitcoin (BTC) and Ether (ETH) exchange-traded funds (ETFs).

“There needs to be custody of the equivalent amount of digital currency to support these ETFs,” Chatterjee said. 

Bitcoin ETFs have surged in popularity since their debut in early 2024. According to Bitbo, the 12 US spot Bitcoin ETF issuers now hold nearly 1.3 million BTC — about 6.2% of the total circulating supply.

BlackRock’s iShares Bitcoin Trust (IBIT) is the largest, with an estimated market value of around $88 billion.

After a slow start, Ether ETFs have seen a surge of inflows, with BlackRock’s Ethereum fund becoming the third-fastest in history to reach $10 billion in assets.

Related: SEC approves in-kind creations and redemptions for crypto ETPs

Custody, payments wouldn’t be Citi’s first move into crypto

Citigroup’s exploration of custody and payment services wouldn’t mark its first foray into the cryptocurrency market.

Earlier this year, the bank partnered with Switzerland’s SIX Digital Exchange to leverage blockchain technology to improve private markets through tokenization. 

Citi has been eyeing tokenization since at least 2023, when it described the technology as the next “killer use case” in crypto — estimating it could reach a $5 trillion market valuation by 2030.

Citi was also reportedly among several Wall Street giants, including JPMorgan, Wells Fargo and Bank of America, exploring the possibility of issuing a joint stablecoin.

A recent report by Ripple, CB Insights and the UK Centre for Blockchain Technologies ranked Citigroup among the most active institutional investors in blockchain companies, with 18 deals between 2020 and 2024.

Traditional financial institutions have been buoyed by Trump-era efforts to provide regulatory clarity for the crypto sector — initiatives that have extended to the US Securities and Exchange Commission and the recent passage of the US GENIUS Act, a key stablecoin law.

In July, the House of Representatives passed the CLARITY market structure bill, the Anti-CBDC Surveillance State Act and the GENIUS Act.

Related: Crypto Biz: Wall Street giants bet on stablecoins

]]> https://earlybirdsinvest.com/citigroup-weighs-crypto-custody-as-etfs-stablecoins-gain-momentum/feed/ 0 53229 https://earlybirdsinvest.com/sygnum-launches-custody-trading-and-lending-services-for-sui-blockchain/ https://earlybirdsinvest.com/sygnum-launches-custody-trading-and-lending-services-for-sui-blockchain/#respond Sat, 09 Aug 2025 18:36:55 +0000 https://earlybirdsinvest.com/sygnum-launches-custody-trading-and-lending-services-for-sui-blockchain/

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Amin Ayan is a crypto journalist with over four years of experience in the industry. He has contributed to leading publications such as Cryptonews, Investing.com, 99Bitcoins, and 24/7 Wall St. He has…

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August 9, 2025

Swiss digital asset bank Sygnum is expanding regulated institutional access to the Sui blockchain with a suite of new products, including custody, trading, and lending services for its professional clients.

The Zurich- and Singapore-based bank announced Friday it will now provide institutional-grade custody as well as spot and derivatives trading for SUI.

Staking services are set to roll out in the coming weeks, while SUI collateral-backed Lombard loans are scheduled for launch in the fourth quarter.

Sygnum to Keep All SUI Holdings Off Balance Sheet for Bankruptcy Protection

All SUI holdings will be kept off the bank’s balance sheet and structured to be bankruptcy remote.

The initiative follows Sygnum’s July 2025 integration of SUI into its platform, making it the first Swiss bank to fully support the token.

Partnering with the Sui Foundation, the bank aims to tap demand from banks, asset managers, and high-net-worth individuals seeking secure and regulated access to blockchain ecosystems.

Sui Foundation managing director Christian Thompson said the collaboration strengthens the project’s links to global institutional investors.

Sygnum CEO Mathias Imbach described the bank’s role as operating at the “intersection” of digital assets and traditional finance, enabling clients to engage with new opportunities under a regulated framework.

Sui, created by Mysten Labs, a team of former Meta engineers, uses parallel transaction processing to boost scalability and supports applications in DeFi, payments, real-world asset tokenization, and gaming.

It has also moved early into the BTCfi sector, allowing Bitcoin holders to participate in DeFi without sacrificing security.

Sygnum holds banking and digital asset licenses in Switzerland, Singapore, Abu Dhabi, Luxembourg, and Liechtenstein.

In May, Sygnum added staked SOL to its Lombard loan collateral portfolio for double earning potential on one asset.

The crypto bank said it has added SOL to its portfolio of over 20 tokens as eligible collateral for its Swiss Franc, Euro, Singapore dollar, and US dollar-denominated Lombard loans.

Sygnum’s other Lombard loan collateral portfolio includes major coins like BTC, ETH, POL, and XRP.

Mill City Eyes $500M Raise for Sui Strategy

Earlier this month, Nasdaq-listed Mill City Ventures III announced plans to raise up to $500 million through a new equity agreement to expand its Sui token treasury.

The announcement came just days after Mill City secured $450 million via the sale of 83 million shares to institutional investors, including Pantera Capital, Electric Capital, ParaFi Capital, and FalconX.

The firm used those funds to purchase 76.2 million SUI tokens valued at $276 million. The remaining capital will support its existing short-term lending operations.

Mill City said it is positioning itself as a specialized SUI treasury, aiming to take advantage of the layer-1 blockchain’s focus on low-latency, scalable infrastructure for AI and gaming applications.

The firm’s new $500 million equity line was arranged with Alliance Global Partners and is intended to further scale its position in SUI.

Binance is taking another step towards damage control by teaming up with the BBVA. Spain’s Second bank. The new arrangement allows customers to post the US Department of Treasury as margins. the It’s clear When trying to isolate the user fund from Exchange risk, it is shown that Binance is trying to clean up the image.

Responding to ongoing scrutiny

This move follows intense regulatory pressure. After billions of dollars fines and ongoing questions about user fund safety last year, Binance has little room to loosen it. Collateral for traders who hold regulated banks appears to be a deliberate effort to rebuild trust without waiting for permission.

binance x bbva@binance Combining the team with the third largest bank in Spain, BBVA, to ensure that clients do not exchange assets as independent custodians.
Move The Move aims to rebuild the collapse of Trust Post-Ftx after Binance’s $4.3 billion fine in 2023.
Client funds are held by the BBVA in the US… pic.twitter.com/bq4fagohom

-Narcos (@misternarcos) August 8, 2025

Traders keep their funds in the bank

The idea is simple. Users will deposit collateral directly with BBVA. These funds go to the US Treasury Department, and Binance accepts them as margins for the transaction. Exchanges never touch money. that’s right a Selection subject A transition from an era when platforms pooled client assets and moved behind the scenes.

Discover: Best New Cryptocurrencies to Invest in 2025

Traditional banks start to take the wheels

The BBVA is more than just an institution. the It’s deeply established in Europe’s It already offers crypto products in the financial system and Switzerland. By partnering with a bank of this size, Binance sends a message that he is willing to work within the system, at least on paper. this It adds to the slow trend of crypto companies that are leaning towards old-fashioned finance due to their structure.

24 hours7d30D1Yeverytime

Timing is in line with policy momentum

Global regulators are ultimately taking custody rules for crypto. With the US european unionauthorities are considering how exchanges manage customer assets. This Binance BBVA placement occurs just like those conversations hit new gear. the It’s not a coincidence.

Layers of user safety

For everyday traders, this means one less thing to worry about. Instead of hoping Binance will maintain the solvent, they know that their collateral is locked in another bank account and supported by government bonds. If Binance gets into trouble, the funds should remain untouched. Such firewalls have been missing from the space for too long.

Discovered: 20+ Next Cryptocurrency Exploding in 2025

Can this set a new standard?

Other platforms may take notes. If this model works, it could move the industry away from dangerous, self-supporting towards banking setups. The idea of splitting custody from a transaction is not new, but it is gaining traction rapidly as the market matures and compliance costs rise.

What’s next for Binance and BBVA

The big unknown is whether Binance will roll out this widely or continue to limit it. If the intake is strong, more banks will be able to enter the photo. For now, this is a test case. But if it sticks, it may reconstruct how crypto exchanges operate.

Binance is trying to play more cautiously, in the wake of regulatory blowbacks and industry meltdowns. By taking charge of BBVA as collateral, the It is trying to show that it can evolve into users and regulators. The interests are high, and this may be one of the more grounded moves that the exchange has been making for a long time.

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Bitcoin Price maintained its position above $115,000 on Friday as Binance, the world’s largest Bitcoin and crypto exchange, partners with Spain’s BBVA Bank to provide third-party custody services and explores key steps towards institutional grade security.

The partnership allows Binance customers to store assets in US Treasury securities held by BBVA, Spain’s third largest bank, and the exchange accepts them as a margin of trading. This arrangement effectively separates trading activities from assets custody and provides an additional layer of security for investors involved in exchange risk.

The move comes as a $4.3 billion settlement with US regulators in 2023 continues to restructure the trust following the $4.3 billion settlement over money laundering violations. The exchange implements more stringent controls and clearer disclosures about fund management, such as allowing clients to use third-party custodians such as Sygnum and Flowbank.

BBVA is increasingly active in the Bitcoin and crypto sectors, launching crypto trading and custody services through this year’s mobile app. The bank also takes a bold attitude by advising private clients to allocate up to 7% of their portfolio to Bitcoin and Cryptocurrency, reflecting the growing institutional trust in crypto.

The custody arrangement addresses one of the main concerns that emerged following the collapse of FTX in 2022. Under the new structure, if Binance faces operational or regulatory challenges, Treasury securities under the control of the BBVA will safely insure customer funds.

This partnership represents a new standard for Bitcoin and crypto exchange security. The integration of traditional banking infrastructure with Bitcoin and crypto trading platforms could accelerate institutional adoption by providing a familiar, regulated framework.

The development is amid accelerating adoption of Bitcoin by companies, with the number of public companies holding Bitcoin on their balance sheets rising to over 200.

Market analysts suggest that the Binance and BBVA partnership can set precedents for similar arrangements between Bitcoin and Crypro exchanges and traditional banks. The move could effectively bridge the gap between traditional finance and Bitcoin and attract more institutional investors who are hesitant to enter the Bitcoin market due to custody concerns.

The volume of major Bitcoin and crypto exchanges remains stable following the news, with Bitcoin prices continuing to trade between $115,000 and $116,000. A calm response in the market suggests that as the Bitcoin and the crypto industry matures, the development of the institutions is increasingly normalised.

The third-largest bank in the US is signaling intentions to enhance its digital asset capabilities and offerings.

In an earnings call for the second quarter of 2025, Citigroup CEO Jane Fraser says stablecoins are the “next evolution in the broader digitization of payments, financing and liquidity.”

According to Fraser, the trillion-dollar bank intends to, among other things, issue a stablecoin and offer custody services for crypto assets.

“So four main areas that we’re exploring [are] reserve management for stablecoins, the on and off ramps from cash and coin, backwards and forwards. We are looking at the issuance of a Citi stablecoin.

But probably most importantly is the tokenized deposit space where we’re very active. And then also providing custodial solutions for crypto assets. So this is a good opportunity for us.”

According to the Citigroup CEO, the third-largest US bank’s potential stablecoin will have a cost advantage when used for making payments.

“So if you keep in mind right now, stablecoins about 88% of all stablecoin transactions are used to settle crypto trades.

There’s only 6% which is payments. In a traditional offering, if you are moving from cash to stablecoin and back to cash, right now, you’re incurring as much as a 7% transaction cost. I mean, that’s just prohibitive. So this is where Citi Token Services is so exciting because it enables the client to move from physical fiat to the digital and back again without incurring that transaction cost.”

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The Office of the Comptroller of the Currency (OCC), the Federal Reserve Board (Fed), and the Federal Deposit Insurance Corporation (FDIC) released a joint statement explaining how existing banking rules apply when institutions custody crypto for customers. 

The guidance describes “safekeeping” as the act of holding a digital asset on a client’s behalf and stresses that it does not create new supervisory demands.

Risk control centers on cryptographic keys

Regulators instructed boards and executives to view crypto custody as a service that relies on exclusive control of private keys and other sensitive data. They note that a bank must prove no other party, even the customer, can unilaterally move an asset once it enters custody. 

Management must assess how key-generation tools, wallet types, and contingency plans align with the institution’s broader control environment and ensure that staff possess the necessary technical skills to maintain these safeguards.

The statement also told banks to weigh the volatility of the asset class and the rapid pace of technological change when allocating capital and staffing for custody operations. 

The agencies said sound programs include continuous reviews of each supported token’s software dependencies and ledger design to spot vulnerabilities that could threaten safety and soundness.

Compliance, governance, and third-party oversight

The three agencies reminded institutions that crypto custody must satisfy Bank Secrecy Act, anti-money laundering, counter-terrorism financing, and Office of Foreign Assets Control rules, including the “travel rule” that attaches identifying information to transfers. 

Boards must involve the BSA officer and senior managers early in any custody rollout to gauge illicit-finance exposure and document controls. 

Additionally, banks that delegate storage to sub-custodians remain responsible for the performance of those vendors. The guidance instructed firms to examine a sub-custodian’s key management methods, segregation of assets, and insolvency protections before signing contracts.

Firms will also be required to build notice requirements for any breach or operational event. Institutions that keep assets in-house but buy third-party software must apply the same vendor-risk disciplines. 

Finally, the agencies requested that auditors expand their testing to include crypto-specific elements, such as key generation, wallet security, and on-chain settlement controls. 

When internal teams lack expertise, management should hire independent specialists to validate safeguards and report directly to the audit committee.

The joint statement concluded that existing fiduciary, custody, and information security regulations already provide a framework for banks that wish to safeguard their crypto.

However, those banks must demonstrate that they can control keys, manage vendors, and comply with federal financial crime statutes in real time.

Three federal agencies of the United States government outlined the risks facing banks if they decide to custody crypto on behalf of their clients, according to a document published jointly by the agencies on Monday.

While the announcement said that the document “does not create any new supervisory expectations,” it could provide a framework for banks that are considering entering the crypto space, as some reports have suggested they are.

According to the document, titled “​​Crypto-Asset Safekeeping by Banking Organizations,” a bank’s risk assessment would include the ability to understand a complex and evolving asset class; the potential of liability if crypto assets were lost; and legal and compliance responsibilities associated with the Bank Secrecy Act and Anti Money Laundering regulations.

“Providing crypto-asset safekeeping services may entail significant resources and attention,” it reads. The three federal agencies responsible for the document are the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC) and the Board of Governors of the Federal Reserve System.

Often, financial institutions use third parties to custody their crypto assets. Asset manager BlackRock, for instance, has used Coinbase and later Anchorage for the custody of its Bitcoin (BTC). BNY Mellon, the US oldest bank, also offers custody of digital assets for clients.

The document notes that banks are responsible “for the activities performed by the sub-custodian.” This advice could be significant in the future if a bank’s custodian is hacked and the crypto is lost.

The agencies write that audit programs are essential and should address the nuances of crypto assets, including key generation, controls related to the transfer and settlement of assets, and staff expertise. If the audit programs don’t exist within the bank itself, “management should engage appropriate external resources…to assess crypto-asset safekeeping operations.”

Related: Trump administration mulls ‘debanking’ executive order: WSJ

More favorable regulatory environment may appeal to banks

There have been indications that some banks are considering an entry into crypto. In May, The Wall Street Journal reported that a group of big banks was in “early talks” to issue a joint crypto stablecoin.

The banks may see the current regulatory environment as more favorable, especially as governing bodies have made a move into crypto easier. For instance, the Federal Reserve has eliminated the “reputational risk” criteria from its oversight of banks, which critics say was used to unfairly target crypto businesses.

Also in May, Acting Comptroller Rodney Hood wrote a letter to banks and federal savings associations saying they could buy and sell cryptocurrency that they are custodying at the direction of their clients. In 2025, the FDIC has undergone a “regulatory reset” and eased crypto restrictions for banks. 

Some native crypto companies are looking to go the opposite route: becoming a bank themselves. On July 2, Ripple, the creator of XRP (XRP), applied for a banking license with the OCC. Circle, the creator of stablecoin USD Coin (USDC), has done the same.

Magazine: Legal Panel: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

]]> https://earlybirdsinvest.com/us-federal-agencies-outline-key-risks-for-banks-eyeing-crypto-custody/feed/ 0 47653 https://earlybirdsinvest.com/tether-quietly-built-8b-gold-reserves-in-swiss-vault-to-reduce-custody-costs-report/ https://earlybirdsinvest.com/tether-quietly-built-8b-gold-reserves-in-swiss-vault-to-reduce-custody-costs-report/#respond Wed, 09 Jul 2025 04:14:53 +0000 https://earlybirdsinvest.com/tether-quietly-built-8b-gold-reserves-in-swiss-vault-to-reduce-custody-costs-report/

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July 8, 2025

Stablecoin issuer Tether has built a gold vault empire worth around $8 billion, stored in a private vault in Switzerland, CEO Paolo Ardoino told Bloomberg in an interview.

The USDT issuer directly owns the vast majority of about 80 tons of gold stockpile outright. However, precious metals represent only 5% of Tether’s $112 billion reserve portfolio, per the company’s March attestation.

“We have our own vault. I believe it’s the most secure vault in the world,” Ardoino noted, declining to reveal the whereabouts of the Swiss vault due to security concerns.

USDT stablecoin reached a market cap of $159 billion last month, claiming 62.43% of the entire $255 billion stablecoin ecosystem.

The company’s gold reserves match the UBS Group’s total precious metals and commodities exposure, the report added.

Tether Gold Reserves Signals Pivot From Pure Fiat Exposure

In Ardoino’s books, gold’s safe-haven status helps buffer against fiat or regulatory turbulence. He said that the precious metal is a safer asset than any national currency.

“Eventually, I think that if people start to get concerned about the potential increase of the debt of the US, they might look at alternatives,” he told Bloomberg.

Further, the recent surge in gold prices is fueled by central bank buying and a return of investor interest in gold ETFs, according to a report from J.P. Morgan.

“Every single central bank in the BRICS countries is buying gold,” Ardoino added.

Gold Reserves Could Lower Custody Costs

Tether has been widely known for its association with gold, launching a gold-based token, Tether Gold, that recently showed stable gains.

According to Ardoino, the company’s decision to own its own gold vault is due to the high costs that precious metal vault operators charge.

If Tether’s gold token were to grow to $100 billion in circulation, “it’s a lot of money to pay 50 basis points,” said Ardoino.

“If you have your own vault, eventually with the size, it gets much cheaper to do custody.”