UniCredit, Italy’s second largest bank, is reportedly considering entering the crypto and digital asset custody market, according to a Bloomberg report.

 

Although UniCredit has yet to publicly announce its intention to offer crypto custody services, Bloomberg, citing people familiar with the matter, reported that the bank is already selecting a provider to build custodial infrastructure that would allow it not only to hold digital assets but also facilitate their buying and selling.

 

In addition to custodial services, Bloomberg also reported that the bank is considering other areas of crypto, including tokenized investment products and fixed income securities, the use of stablecoins, and exposure to cryptocurrencies, as possible areas of expansion.

 

UniCredit’s expansion into crypto custody comes at a time when financial institutions are also considering expanding into the sector.

 

Just recently, Jack Dorsey owned financial technology company Block formally applied to the Office of the Comptroller of the Currency (OCC) to establish a National Trust Bank that would allow it to offer crypto custody services.

 

In August, Citibank also announced plans to launch a native Bitcoin custody service that would allow its clients to hold Bitcoin alongside traditional assets such as stocks and bonds.

 

While UniCredit has yet to officially issue a public statement regarding the move, speculation surrounding the bank’s plans to expand into crypto custody could be a significant development for the crypto industry if successful, as it would enhance crypto adoption, bridging the gap between blockchain-based finance and traditional finance.