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Absa has become the first bank in Africa to offer Bitcoin custody to institutional clients, with Bitcoin already the largest asset on its new platform. The South Africa-based service went live on Sept. 21, with expansion to other customer groups and African markets pending regulatory approval, Bloomberg reported Oct. 2.
Bitcoin currently accounts for the largest portion of assets held through Absa’s institutional custody platform, according to Downes. The executive said the bank is also working with customers interested in having other crypto assets held in South Africa.
“Bitcoin is the predominant asset in custody.” — Rob Downes, head of digital assets, Absa Corporate and Investment Banking
The bank’s initial focus is institutional clients, but Absa expects the service to eventually reach other customer groups. Downes also said the lender is working toward introducing its digital asset services in other African countries where it operates, although such expansion will depend on obtaining the necessary regulatory approvals.
Absa’s product documentation describes Bitcoin custody as part of a broader institutional service designed to give customers controls over digital assets, transactions and internal approvals. The bank says the service protects the private keys required to authorize blockchain transactions while applying its existing banking governance and compliance framework.
The launch comes as institutional participation in digital assets continues to develop across financial markets. For Absa, the service provides a regulated banking infrastructure through which institutional customers can manage digital assets while maintaining established operational and compliance procedures.
Absa’s Bitcoin custody offering is powered by technology supplied by Ripple, following a partnership between the two companies announced in October 2025. Ripple identified Absa as its first major custody partner in Africa, with the agreement covering technology for storing and managing cryptocurrencies and tokenized assets.
The commercial platform went live on Sept. 21, almost a year after the partnership was announced. Its architecture combines Ripple’s technology for communicating with blockchain networks with Absa’s own internal infrastructure.
Robyn Lawson, Absa CIB’s head of digital product for custody, has highlighted security, governance, recovery and authorization controls as key components of the system.
“The gold standard in digital asset custody is about more than just securely storing assets; it’s about ensuring that clients can access and manage their assets securely, even in the most challenging circumstances.” — Robyn Lawson, head of digital product for custody, Absa CIB
According to Lawson, cryptographic keys and transaction authorizations are protected within secure hardware environments. Rather than permanently storing private keys, the system securely derives them when required. Absa has also incorporated cryptographic recovery processes and multiple layers of controls intended to maintain access during operational disruptions.
For institutional customers, the ability to maintain secure access to digital assets is particularly important. Lawson said the loss of key access could expose businesses and their clients to operational, reputational and regulatory risks.
Absa initially plans to concentrate on core Bitcoin custody functions before developing additional capabilities based on customer demand and regulatory developments.
The expansion of Bitcoin custody comes against the backdrop of significant cryptocurrency activity in South Africa. Chainalysis ranked the country second in Sub-Saharan Africa by crypto value received between July 2024 and June 2025, recording approximately $36 billion during the period.
Nigeria ranked first in the region with $92.1 billion, while Sub-Saharan Africa collectively recorded more than $205 billion in on-chain value. Chainalysis said the regional figure represented an increase of roughly 52% from the previous year.
The research firm also identified South Africa as having a relatively institutionalized crypto market, pointing to the country’s regulatory framework and hundreds of licensed virtual asset service providers. Large transactions included activity associated with trading strategies such as arbitrage, while financial institutions were developing custody and stablecoin products.
Bitcoin represented 74% of fiat purchases of cryptocurrency in South Africa within Chainalysis’ centralized-exchange dataset. The figure does not cover informal markets, over-the-counter transactions or activity conducted outside the exchanges tracked by the firm.
Chainalysis also introduced an institutional activity measure in its 2025 adoption methodology, covering transfers above $1 million through centralized services. The measure was designed to capture activity involving professional investors, hedge funds, custodians and other institutional participants.
That environment provides an important backdrop for Absa’s decision to develop Bitcoin custody and related institutional digital asset services.
Absa’s move also follows the growing involvement of established banks in digital asset custody internationally. In the United States, BNY Mellon launched a digital asset custody platform in 2022, allowing selected institutional customers to hold and transfer Bitcoin and Ether.
U.S. regulators have subsequently provided greater clarity around banks’ involvement in digital assets. In March 2025, the Office of the Comptroller of the Currency confirmed that national banks and federal savings associations may engage in crypto custody, certain stablecoin activities and permitted blockchain payment activities. The regulator also removed an earlier requirement for supervisory non-objection before institutions could undertake the covered activities.
The OCC later clarified in May 2025 that banks could buy and sell assets held in custody at a customer’s direction. It also said banks could outsource permitted crypto custody and execution functions, provided they appropriately manage third-party risks.
The developments have helped establish a broader institutional framework for Bitcoin custody and other digital asset services among traditional financial institutions.
In Europe, Deutsche Bank was also reported in September to be preparing an institutional crypto custody service for later in 2026. The planned offering is expected to initially support Bitcoin, Ether, USDC, EURC and EURAU, subject to regulatory completion, internal approvals, risk controls and customer onboarding.
For Absa, the launch represents an expansion of traditional banking infrastructure into the digital asset market. Its initial Bitcoin custody service is focused on institutional customers in South Africa, while the bank has indicated that additional customer segments, assets and African markets could follow as demand and regulatory conditions develop.
As institutional cryptocurrency adoption evolves, Bitcoin custody is increasingly becoming an area where traditional banks compete with specialist digital asset firms. Absa’s entry gives African institutions another bank-based route for managing Bitcoin within a formal custody and compliance framework.
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