Santander’s Crypto Ambitions: Spain’s Top Bank To Roll Out Stablecoin

Banco Santander SA, one of the largest banks in Europe and Spain, is reportedly considering introducing its own stablecoin. The bank also plans to give its digital banking arm, Openbank, the ability to offer crypto services to retail clients.

According to a Bloomberg report from May 29, the Spanish bank’s online unit has applied for licenses to operate these services under the European Union’s Markets in Crypto-Assets (MiCA) regulation.

Euro And Dollar Stablecoins For Retail Clients

While Santander has not officially commented on the report, Bloomberg sources reportedly indicate that the bank is evaluating the launch of euro- and dollar-denominated stablecoins. This could involve creating its own stablecoin or facilitating access to existing ones. 

Santander’s Openbank, which serves customers across multiple European countries, is poised to launch these crypto services as early as this year, contingent on obtaining the necessary regulatory approvals, according to Bloomberg.

This move comes as Santander’s Spanish competitor, BBVA SA, announced in March its intention to offer cryptocurrency services following approval from Spain’s regulatory authority, the CNMV. 

BBVA has already been providing similar services in Switzerland and Turkey, allowing customers to buy, sell, and manage transactions in Bitcoin (BTC) and Ethereum (ETH) through their app. 

How BBVA Aims To Guide Customers In Crypto Assets

Gonzalo Rodríguez, BBVA’s head of retail banking in Spain, emphasized the bank’s commitment to making cryptocurrency investment accessible, stating, “Our goal is to guide them as they explore this new segment of digital assets, backed by the solvency and security assurances provided by a bank like BBVA.”

The MiCA regulation aims to harmonize the currently fragmented regulatory landscape across the European Union’s (EU) 27 member states. 

By establishing a comprehensive framework, the European Union’s Markets in Crypto-Assets is shaping how major digital market participants operate within one of the world’s largest economic regions. 

The regulation allows banks, investment firms, and other financial institutions to engage in cryptocurrency activities, provided they have the necessary authorization under the Markets in Financial Instruments Directive (MiFID) II.

Such a move comes in the wake of growing legislative support in the US led by President Donald Trump, who has increasingly changed its previous vision about digital assets and Bitcoin with major announcements, including the establishment of a Strategic Crypto Reserve.

As such, Bitcoin reached a new record high of $111,800 last week, with analysts and investors vowing to see even greater gains in the coming months. 

Consequently, the total crypto market capitalization reached a new high of $3.5 trillion last week, now standing at $3.3 trillion as investors flock to cash out their gains. 

Featured image from DALL-E, chart from TradingView.com