Good news for FNB customers in South Africa
First National Bank (FNB) has introduced cryptocurrency investments to its customers, available through its existing trading platform.
The South African banking giant said this will expand its investment options for clients through “secure access to an emerging asset class.”
The group has partnered with VALR, an existing cryptocurrency trading platform, to provide the new investment type to clients.
FNB CEO, Sizwe Nxedlana, said, “customers will now have access and exposure to crypto assets, with the ability to trade a set of curated coins, as well as benefiting from the bank’s investment knowledge and experience.”
“The digital currencies include Bitcoin, Ethereum, Ripple, Solana and USDT, a stablecoin pegged to the Dollar, all available on FNB’s share trading platform.”
The company said that clients will be able to trade digital currencies on its platform from as little as R10 and will have 24/7 access to the services.
The move from FNB comes as crypto trading has grown exponentially in recent years, going from a niche asset class to a globally recognised investment.
“Blockchain-based technologies are making significant inroads into Africa’s financial landscape,” FNB said.
“Once dismissed as a niche technology primarily associated with cryptocurrency shakedown, blockchain has shed its fringe image.”
FNB Wealth and Asset Management CEO, Bheki Mkhize, said, “We have observed a lot of activity and interest from our clients around crypto.”
The bank also said that cryptocurrency trading is becoming easier to facilitate, with regulators issuing more licenses for the service and laws on the asset becoming clearer.
“Regulators are now issuing more licences to respective financial institutions, thereby supporting and regulating the sector,” it said.
“This shift is partly driven by the growing recognition and involvement of major fund managers like BlackRock”.
“Governments are also slowly implementing clearer tax laws and regulatory frameworks, which can lend more legitimacy and confidence to the market.”
Nxedlana said FNB’s new offering would provide clients with alternative investment opportunities, helping broaden access to different asset types.
“We have listened to client requests for us to provide them with alternative investment solutions that will help broaden access to different asset classes with high growth potential,” he said.
“Crypto as an asset class offers that diversity. We believe this offering provides a safe and easy way for our customers to access cryptocurrencies.”
Clients will be able to trade in crypto assets using funds in their FNB accounts, with the service enclosed within the bank’s own ecosystem to ensure security and regulatory compliance.
“To ensure security of the platform and a more conservative approach to compliance and exchange control laws, trading is ringfenced within the FNB ecosystem,” FNB said.
“Crypto assets cannot be transferred in or out.”
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