Santander Launches BTC, ETH Services for High Net-Worth Clients (Report)

Spanish financial institution Banco Santander – Santander Private Banking International – has reportedly introduced a new feature that allows customers with Swiss accounts to participate in Bitcoin (BTC) and Ethereum (ETH) investment and trading.

Given Banco Santander's extensive history spanning more than 160 years and a broad customer base of 166 million individuals, the private banking division, which serves 210,000 wealthy clients and manages approximately $315 billion in assets and deposits, is highly influential.

Therefore, the decision to allow high-net-worth clients affiliated with Santander Private Banking International to engage in BTC and ETH trading is noteworthy and has significant implications for the industry.

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The historical movement of Santander

Although Santander's initial cryptocurrency trading service is said to be limited to BTC and ETH, the giant banking contractor plans to expand its offerings once they meet the specified screening criteria. .

The report states that Santander has started offering BTC and ETH trading services by responding to customer inquiries through contact managers.

The bank intends to protect the private encryption keys of the assets it sells within the prescribed security framework.

John Whelan, head of crypto and digital assets at Santander, is reported to have said in an email.

“Swiss regulation related to digital assets is the first and most advanced in the world as it provides our clients with transparency and a comprehensive regulatory environment. As the adoption of crypto as an alternative asset class expands, we expect our clients to rely on their existing financial institutions to be responsible for their assets.”

Santander could not officially confirm the development.

Try with Crypto

The new development comes nearly a year after Santander announced plans to limit real-time payments for cryptocurrency exchanges to UK customers, citing its commitment to protecting its customers from potential fraud.

It cited witnessing a “significant increase in UK customers falling victim to cryptocurrency fraud” behind the decision. The financial giant has expressed its desire to further “protect customers” by banning all instant payments from Santander accounts to cryptocurrency, a move expected to take effect in 2023.

However, in June 2023, the bank changed its stance and launched an educational series for its customers focused on digital assets.

What makes this change interesting is that it coincides with the growing interest of institutional entities in crypto assets. Many traditional institutions have joined the trend of adopting Bitcoin ETFs to provide their clients with indirect exposure to the cryptocurrency.