Absa Group has become the first African bank to offer institutional digital asset custody, marking a major step into the continent’s growing cryptocurrency and blockchain market.
The Johannesburg-based lender is providing institutional clients in South Africa, including asset managers, non-bank financial institutions and corporates, with services for the secure storage, administration and transfer of digital assets. (Moneyweb)
The service went live on September 21 and was developed using custody technology from Ripple, a digital asset infrastructure company. Absa has received approval from South African regulators for the offering. (Absa | Corporate and Investment Banking)
Rob Downes, head of digital assets at Absa’s corporate and investment banking unit, said the bank plans to expand the service beyond its current client base and into other African markets where regulatory approval is obtained.
“We expect to extend this to other client segments in South Africa in due course, and are actively working on bringing the solution to some of our other African presence countries in line with regulatory approvals required,” Downes said. (Moneyweb)
Bitcoin, Ethereum and USDC supported
The custody platform currently supports Bitcoin, Ethereum, the XRP Ledger and USDC, with Absa planning to add other digital assets as demand develops. (Moneyweb)
“Bitcoin is the predominant asset in custody,” Downes said.
He added that the bank is working with clients to support “other crypto assets they would like to be custodied in South Africa.”
The service is aimed at institutional and large business clients rather than retail cryptocurrency users. It allows eligible customers to hold and transfer digital assets through infrastructure operated within a regulated banking environment. (ITWeb Africa)
Digital asset market expands
The move comes as demand for regulated digital asset infrastructure grows globally and across Africa.
In South Africa, crypto assets held by the country’s three largest licensed providers — Luno, VALR and Ovex — more than doubled to R25.3 billion, equivalent to about $1.5 billion, by the end of 2024 from less than R10 billion at the beginning of 2023. (Moneyweb)
The broader digital asset custody market is also expanding. Absa says the global market was valued at more than $683 billion in 2024 and could reach at least $4.3 trillion by 2033. (Absa | Corporate and Investment Banking)
For institutional investors and businesses, custody services can provide a regulated way to safeguard private keys and manage digital assets without relying solely on traditional cryptocurrency platforms.
Absa said its offering combines digital asset technology with existing banking controls around governance, security, compliance and operational resilience. (Absa | Corporate and Investment Banking)
Absa eyes wider African expansion
Absa’s launch also creates a platform for the bank to explore other blockchain-based financial services, including tokenisation, digital securities, stablecoins and digital payments.
However, extending the custody service to other African countries will depend on regulatory approvals and market demand in each jurisdiction.
The bank’s partnership with Ripple began in October 2025, when the two companies announced plans to provide institutional digital asset custody services in South Africa. Absa was Ripple’s first major custody partner in Africa. (Absa | Corporate and Investment Banking)
With the service now operational, Absa is positioning its digital asset business around institutional clients seeking secure and regulated access to the growing crypto market.
