Italy embraces blockchain, but remains wary of cryptocurrencies

​Italy's banks are finding new uses for blockchain, from digital bonds to cryptocurrency custody and payments. Yet ordinary Italians remain relatively cautious about investing in digital assets. Could banks, rather than cryptocurrency enthusiasts, drive the country's next wave of adoption?

Italian banks bring blockchain into corporate financing

Italy's financial institutions are expanding their use of blockchain technology, with a €10 million digital bond providing one of the latest examples. Just last week, BPER Banca and state-backed Cassa Depositi e Prestiti (CDP) announced a tokenized minibond issued by Italian infrastructure company SITE, with the two institutions subscribing equal amounts.

View post on X Loading...

The tweet was deleted by the author.

But we saved everything 🙂.

The six-year bond will finance equipment, software, and monitoring systems for SITE's operations in Italy, particularly in Emilia-Romagna and southern regions. SITE develops infrastructure projects across telecommunications, energy, railways, and other sectors. Unlike a conventional bond, the securities were issued and managed using blockchain technology provided by Italian fintech BlockInvest. Weltix served as the digital securities register manager under Italy's Fintech Decree.

The transaction was described as Italy's largest tokenized bond issuance by value. For banks, blockchain offers the possibility of simplifying securities issuance, improving transparency, and reducing administrative processes. CDP has been exploring tokenized finance as part of its efforts to modernize capital markets and expand financing options for businesses.

The SITE transaction is not an isolated experiment. UniCredit previously arranged a €5 million tokenized minibond for Italian company Union, financing the construction of five photovoltaic plants. The bank has also used blockchain technology in corporate debt financing in Germany, extending its digital securities activities beyond the Italian market.

MiCA changes the rules for Italy’s cryptocurrency market

As banks develop new products, cryptocurrency businesses are adjusting to stricter European rules. Italy's transition to the EU's Markets in Crypto-Assets Regulation (MiCA) ended on June 30, 2026, replacing the previous national registration system with a European authorization framework. Cryptocurrency exchanges and other covered service providers must now obtain authorization to operate, while eligible financial institutions can offer certain services through a notification process.

Italy's financial regulator Consob and the Bank of Italy share responsibility for supervising the sector. By the end of the transition period, nine entities were authorized or otherwise permitted to provide covered crypto services in Italy: eight crypto-asset service providers and one bank. The new framework aims to strengthen consumer protection and address financial stability and operational risks, although compliance requirements may increase costs for smaller operators.

MiCA also introduces specific requirements for safeguarding customer assets, corporate governance, and financial resources. Providers must maintain prudential safeguards based on their activities and operating expenses, while firms offering custody services face additional obligations concerning client holdings. Authorized providers are included in the European Securities and Markets Authority's register.

Why cryptocurrency ownership remains limited in Italy

While Italian banks are expanding their blockchain activities, relatively few consumers are investing in cryptocurrencies. Research from the Politecnico di Milano estimates that approximately 2.8 million Italians hold cryptocurrencies, equivalent to around 7% of consumers surveyed.

View post on X Loading...

The tweet was deleted by the author.

But we saved everything 🙂.

Italy trails several other European markets. The same research puts cryptocurrency ownership at 9% in France, 11% in Germany, and 14% in Spain. However, 11% of Italian consumers expressed interest in purchasing digital assets in the future. Notably, 52% of those interested in buying cryptocurrencies did not invest in other financial instruments, suggesting that digital assets could become their first investment.

This contrast reflects the different ways banks and individual investors approach digital assets. Financial institutions are using blockchain to improve securities issuance, payments, and other services, while retail investors generally encounter cryptocurrencies as speculative assets. The expansion of blockchain-based financial products therefore does not necessarily translate into greater cryptocurrency ownership.

For individual investors, concerns about volatility, security, and the complexity of digital assets remain significant. MiCA may strengthen confidence in regulated service providers, but it cannot eliminate investment risks or guarantee that more Italians will enter the cryptocurrency market.

Can Italy turn blockchain innovation into a financial advantage?

Italian banks are moving beyond individual blockchain experiments. In April, UniCredit invested €4 million in tokenization company BlockInvest, acquiring a stake of approximately 16%. The same technology provider later supported the SITE minibond, connecting the bank's investment strategy with a growing market for digital securities.

Payments offer another potential opportunity. UniCredit is among the European banks backing Qivalis, a consortium developing a regulated euro-denominated stablecoin. The initiative could eventually support faster cross-border payments and settlement, although its commercial advantages over existing banking services remain to be demonstrated.

The bigger question is whether these initiatives can develop into sustainable businesses. Tokenized bonds must offer practical advantages over conventional financing, while stablecoin payments face competition from established financial networks. Italy's blockchain industry could expand through corporate financing, custody, and payments without a corresponding surge in cryptocurrency ownership. Its success may ultimately depend more on the value of these financial services than on how many Italians decide to buy Bitcoin.