The Crypto Desk

“Intesa Sanpaolo, Italy’s Ripple Partner, Enhances Digital Assets Desk for Cryptocurrency Spot Trading”

Intesa Sanpaolo Expands Digital Assets Desk

Introduction to Spot Trading

Intesa Sanpaolo SpA, recognized as Italy’s largest bank, is enhancing its digital assets desk by incorporating spot trading for cryptocurrencies. This Milan-based financial institution has previously engaged in trading crypto options, futures, and ETFs through its corporate and investment banking division, aligning with broader blockchain initiatives.

Internal Approval and Technical Readiness

As reported by Bloomberg, Intesa Sanpaolo has obtained the necessary internal approvals and technical infrastructure to enter the cryptocurrency spot trading market. This move is pivotal for the bank as it positions itself to cater to institutional clients in the rapidly evolving crypto landscape.

The Role of Intesa’s Trading Team

The bank’s proprietary crypto trading desk, established in 2023, is currently focused on derivatives trading and is spearheaded by a four-person team led by quant trader Niccolò Bardoscia. Although the spot trading operations have not yet gone live, sources indicate that the team achieved technical readiness for their activities a month ago.

Collaboration with Ripple Custody

To further bolster its capabilities in the digital asset sector, Intesa Sanpaolo has partnered with Ripple Custody, previously known as Metaco. This collaboration aims to enhance tokenized asset custody solutions, and Cassie Craddock, managing director for Ripple in the UK and Europe, has acknowledged the bank’s preparedness for managing tokenized assets. However, details regarding the partnership remain undisclosed by an Intesa spokesperson.

Proprietary Trading Focus

At this stage, Intesa Sanpaolo’s cryptocurrency trading operations are restricted to proprietary trading, which involves using its own capital rather than trading on behalf of clients. This strategic move essentially lays the groundwork for potential future engagements in institutional trading of digital assets with external clients.

Regulatory Environment and Market Trends

Intesa’s push into spot crypto trading aligns with Italy’s ongoing discussions regarding tax reforms that may alleviate the tax burden on crypto transactions. Simultaneously, the European Union is advancing toward establishing its first comprehensive regulatory framework for cryptocurrencies, which is anticipated to entice more large-scale institutions into the digital asset space.

Leading Digital Bond Issuance

In a prominent instance of digital asset adoption in Italy, Intesa Sanpaolo was the sole institutional investor in Cassa Depositi e Prestiti’s digital bond issuance in July. This significant move indicates the bank’s commitment to embracing innovative financial instruments and technology.

Other Institutions Embracing Crypto

As Intesa takes the lead, major global financial institutions such as BlackRock and JPMorgan Chase & Co. are also intensifying their involvement in the cryptocurrency market. BlackRock, which manages over $42 billion in a Bitcoin-backed ETF, is working to integrate its digital money market coin into crypto derivatives. Meanwhile, JPMorgan is enhancing its blockchain platform to provide instant settlements for foreign exchange conversions and is planning to add more currencies in the future.

Strategic Partnership with BlackRock

On November 12, 2024, Fideuram Intesa Sanpaolo Private Banking (FISPB), the private banking division of Intesa Sanpaolo, announced a strategic partnership with BlackRock. This collaboration aims to elevate its digital wealth management presence throughout Europe, initially targeting Belgium and Luxembourg as key expansion markets. Through this partnership, FISPB intends to broaden its European client base by offering innovative services, including digital brokerage, hybrid advisory, and discretionary portfolio management.

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