Intesa Sanpaolo SpA, Italy’s largest banking institution, is broadening its digital asset services by preparing to introduce spot cryptocurrency trading. This move expands upon the Milan-based bank’s existing crypto activities, which currently include trading in crypto options, futures, and ETFs within its corporate and investment banking sector.
Readying for Spot Crypto Trades
As per Bloomberg, Intesa has now obtained internal approvals and completed technical preparations to enter the cryptocurrency spot market. Sources familiar with the matter report that the bank has equipped its digital assets desk to handle these trades, indicating a potential step toward institutional crypto transactions.
Established Digital Assets Team Prepares for Expansion
Intesa Sanpaolo, founded in 2023, employs a dedicated four-person team in its proprietary crypto trading division, led by quant trader Niccolò Bardoscia. While the bank’s focus has been on derivatives trading, this team has recently received the necessary technical capabilities to handle spot trading. Intesa has also collaborated with Ripple Custody, previously known as Metaco, to support the custody of tokenized assets. Cassie Craddock, Ripple’s managing director for the UK and Europe, confirmed the partnership, highlighting Intesa’s readiness to manage tokenized assets. However, an Intesa spokesperson declined to provide additional details.
Proprietary Trading with Future Institutional Prospects
Intesa’s current crypto trading efforts are limited to proprietary activities, meaning it trades using its own capital rather than that of clients. However, these efforts are seen as laying the groundwork for possible institutional digital asset trading with clients in the future.
Regulatory Developments and Expanding Crypto Adoption
Intesa’s move into spot crypto trading aligns with Italy’s consideration of potential tax changes that could ease the tax burden on crypto trades. Simultaneously, the European Union is advancing a regulatory framework that may open the door for more large institutions to explore crypto.
Intesa’s Digital Bond Initiatives Signal Growing Institutional Interest
In July, Intesa participated as the sole institutional investor in Cassa Depositi e Prestiti’s issuance of a digital bond, further underscoring the bank’s commitment to digital assets. Other major financial institutions, including BlackRock and JPMorgan Chase & Co., are also delving into crypto markets. BlackRock, which manages over $42 billion in a Bitcoin-backed ETF, seeks to integrate its digital coin into crypto derivatives trading, while JPMorgan is exploring blockchain-based forex settlements.
BlackRock Partnership Expands Digital Wealth Management
On November 12, 2024, Fideuram Intesa Sanpaolo Private Banking (FISPB), the private banking division of Intesa, announced a collaboration with asset management giant BlackRock. This partnership aims to strengthen digital wealth management services across Europe, initially focusing on Belgium and Luxembourg. Through this alliance, FISPB will offer digital brokerage, hybrid advisory, and discretionary portfolio management services, expanding its European client base.
Intesa’s strategic moves highlight an increasing institutional interest in cryptocurrency and blockchain technology within traditional finance, setting a significant precedent for other banks in Italy and beyond.
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