Absa launches digital-asset custody in South Africa

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Absa digital-asset custody launch

Highlights

Absa Group has launched digital-asset custody for South African institutional clients after receiving regulatory approval, supporting Bitcoin, XRP Ledger, Ethereum, and USDC.
Absa plans to expand its custody services to other client segments and additional African markets, pending regulatory approvals.
Crypto assets under custody at Luno, VALR, and Ovex more than doubled to R25.3 billion by end-2024, while the global custody market is projected to reach $4.38 trillion by 2033.

Rollout for institutional clients

As reported by Moneyweb, Absa Group is launching digital-asset custody for its South African institutional asset clients, including asset managers, non-bank financial institutions and corporates. The Johannesburg-based lender says the service provides secure safekeeping, administration and transfer of digital assets.

The bank has received approval from South African regulators for the offering, which currently supports Bitcoin, XRP Ledger, Ethereum and USDC. Absa says it plans to broaden the range of supported assets as it works with clients on additional crypto tokens they want held in custody.

Rob Downes, head of digital assets at Absa's corporate and investment banking unit, says the bank expects to extend the service to other client segments in South Africa in due course. He adds that Absa is also working to introduce the solution in some of its other African markets, subject to regulatory approvals.

Market size and industry implications

Bitcoin is currently the main asset held in custody on the platform, according to Downes. The launch positions Absa to compete in a segment that has so far been served mainly by licensed crypto service providers rather than traditional banks.

The South African Reserve Bank estimates that crypto assets under custody at the country's three biggest licensed providers, Luno, VALR and Ovex, more than doubled to R25.3 billion by the end of 2024 from less than R10 billion at the start of 2023. Globally, the custody market is valued at about $953.5 billion by 2026 and is projected to reach as much as $4.38 trillion by 2033.

Our earlier article on the JSE’s censure of AngloGold Ashanti explained how South Africa’s market watchdog is tightening expectations around the timing of price-sensitive disclosures for dual-listed companies. We highlighted that releasing earnings and dividend information abroad before publishing it on SENS can undermine market integrity and equal access for local investors, reinforcing stricter compliance standards for issuers operating across multiple venues.

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