Santander Deviates From Banking Norm, Embraces Crypto Trading And Blockchain

Santander Private Banking International is now offering affluent clients in Switzerland the opportunity to trade and invest in major cryptocurrencies.

What Happened: According to CoinDesk, citing a memo, Santander — a division of the Spanish banking powerhouse Banco Santander — plans to expand its cryptocurrency offerings to include additional digital currencies that pass the firm's stringent screening process.

The service will be available exclusively at the request of clients, facilitated through relationship managers.

Furthermore, Santander ensures the security of digital assets such as Bitcoin (CRYPTO: BTC) and Ether (CRYPTO: ETH) by employing a regulated custody model that safeguards the private cryptographic keys in a highly secure environment.

Why It Matters: This strategy marks a significant departure from the norm. Most large banks typically shy away from direct involvement with open-access blockchains and their associated cryptocurrencies.

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Banco Santander, with a history spanning over 160 years and a customer base of 166 million, is a significant player in the financial world.

The private banking sector of Santander serves around 210,000 high-net-worth individuals, managing assets and deposits that total approximately $315 billion.

Santander head of crypto John Whelan said Swiss regulation, related to digital assets, "is one of the first and most advanced in the world since it provides clarity and a comprehensive regulatory environment for our clients.”

“As holding of crypto as an alternative asset class continues to expand," he added, "we expect that our clients prefer to rely on their existing financial institutions to be responsible for their assets.”

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