- TradFi institutions such as Deutsche Bank and Blackrock are exploring their prospects in the crypto industry.
- The involvement of major TradFi groups in the crypto industry may boost the acceptance and usage of crypto assets.
The French market regulator Autorité des marchés financiers (AMF) granted crypto custody registration to CACEIS. It is the asset servicing division owned by the French banking giant Credit Agricole and Santander.
Establishments offering crypto custody, exchange, or trading services in France must register with the AMF.
CACEIS was registered as a digital asset service provider (DASP) with the French regulator, as of 20 June. It is also among a long list of traditional finance (TradFi) firms such as Societe Generale’s Forge and AXA Investment Managers in being authorized as a part of one of the most advanced crypto regulatory frameworks in Europe.
As per its website, CACEIS held assets worth 4.1 trillion euros ($4.51 trillion) under custody. Credit Agricole SA is its majority owner with a 69.5% stake in the group, while Santander holds a 30.5% stake.
France was the first prominent European nation to register Binance, the world’s leading crypto exchange, in 2022. The French authorities are, however, investigating the crypto firm for allegedly offering its services illegally prior to receiving the approval.
TradFi exploring its prospects in the crypto industry
Several TradFi institutions are still exploring their prospects in the crypto industry. It was revealed earlier this week that Deutsche Bank was seeking a crypto custody license in Germany.
BlackRock, the world’s leading asset management company, filed an application in the U.S. last week to operate a Bitcoin spot exchange-traded fund (ETF). Another major asset manager WisdomTree also recently filed a similar application.
Meanwhile, the European Central Bank (ECB), over the years, advised banking institutions to maintain substantial levels of precautionary capital for “risky” assets. This was despite the fact that a February regulatory survey assessed crypto operations and exposures as small.
The crypto community believes that as major financial groups involve themselves in the crypto industry, it would lead to more acceptance and usage of the crypto assets.
