The tendency of traditional banking actors to join the crypto world continues to rise. Now, Banco Galicia de Argentina is launching a new cryptocurrency purchase, sale and custody service through its mobile application. The bank will offer Bitcoin (BTC), Ether (ETH), USD Coin (USDC), and Ripple (XRP)cryptocurrencies with which this project begins, although it does not rule out expanding the range of digital currencies in the future.
This service is launched “after an arduous evaluation of the different crypto assets and taking into account the high demand from customers”, according to the bank. “More than 90% of people say they know cryptocurrencies and even many of them see them as an investment and the financial future”, says Ariel Sanchez, Manager of Investment Products at Banco Galicia.
The cryptocurrencies with which Banco Galicia will operate, according to the company, are related to “projects with practical uses such as blockchains, smart contracts, ledgers, among others”. The bank looks for popular and liquid cryptocurrencies, in order to be able to offer liquidity to its own clients. In addition, the proposal focuses on providing the greatest security to clients through the offer of projects that they consider most stable and with proven uses, such as Ripple.
The service will work through an intermediary, the company Lirium, which will provide the cryptocurrencies to the entity. Thus, Galicia will actually leave the purchase, custody and sale of cryptocurrencies in the hands of this company, with the company offering the necessary security and liquidity so that the service can be offered. The company will segregation of funds (to give more security to users) and will act as certified custodian. Lirium will work with international exchanges.
Given the high volatility of this financial asset, the bank recommends it only for clients with a moderate or risky risk profile.
But Galicia is not the only one. The digital bank Brubank also enabled today the possibility of buying Bitcoin and other cryptocurrencies from its platform. As a differential, this neobank will have stablecoins in its portfolio; in particular USDC and DAI.
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Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.