Italy’s largest lender, Intesa Sanpaolo, widens its digital assets desk to handle spot trades, pushing further into crypto markets.
Expanding Crypto Capabilities
Intesa Sanpaolo, Italy’s largest bank, is expanding its digital assets desk to include spot cryptocurrency trading. This move signifies another step toward deeper involvement in the digital asset market by traditional banking institutions. Intesa’s proprietary crypto trading desk, established within the corporate and investment banking division in 2023, has so far dealt with crypto options, futures, and exchange-traded funds (ETFs).
Internal Approvals in Place
While the crypto spot trading operations have not yet fully commenced, the bank has received all necessary internal approvals, and the technical systems have been ready for about a month. This four-person trading team is led by quant trader Niccolò Bardoscia, reflecting the bank’s strategic focus on blockchain technology and digital assets.
Ripple Custody’s Involvement
Intesa Sanpaolo has partnered with Ripple Custody (formerly Metaco) to develop its custody solution for managing tokenized assets. Ripple confirmed its involvement in building the infrastructure that will support Intesa’s long-term blockchain goals.
Strategic Timing Amid Regulatory Changes
This expansion comes as Italy’s government considers adjusting its crypto tax regulations and the European Union prepares to roll out its first comprehensive crypto regulations. These shifts are likely to increase institutional activity in the crypto market.
A Broader Blockchain Vision
Though Intesa is currently focusing on proprietary trading, the bank’s initiatives fit into its larger blockchain projects, potentially paving the way for future digital asset trading services for institutional clients. Intesa’s growing crypto presence complements its broader strategic investments, such as its role as an underwriter and sole institutional investor in Italy’s first digital bond issuance.
Global Financial Firms Dive Into Crypto
Intesa joins other major financial institutions making significant moves into the crypto space. BlackRock, the world’s largest asset manager, has grown its Bitcoin-backed ETF to $42 billion and is working to expand the use of its digital money-market coin. Meanwhile, JPMorgan Chase is utilizing blockchain to enable instant settlement for currency conversions, further indicating how large players are embracing the technology.
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