Capital Union, a bank based in the Bahamas that reportedly owns a portion of the reserves of stablecoin issuer Tether (USDT), has been active in the cryptocurrency industry.
The banking institution has rolled out cryptocurrency trading and custody services to its professional clients as part of the bank’s trading platforma Capital Union spokesperson told Cointelegraph on May 31.
“We work with a few select trading venues and liquidity providers and a group of custodians and technology providers, allowing us to support a wide variety of digital assets as part of our trading and custody services,” said the representative of the signature.
Capital Union’s cryptocurrency-related services continue to represent a “fairly small portion” of its business, which is primarily focused on providing traditional wealth management and investment services.said the representative.
The spokesperson did not elaborate on exactly what cryptocurrencies are supported on the Capital Union platform or when they went live, stating:
“We do not have a directional view on crypto markets or any specific currency, but as a forward-thinking financial institution, we have chosen to allow our professional clients to trade in this new asset class if they so choose.”
According to the representative, Capital Union has also been actively working on developing “blockchain-related transactional capabilities,” as the bank expects this to be an area of ”significant disruption to the financial industry.”
Capital Union’s latest crypto-related comments follow a May 30 report that Tether held some of its reserves at Capital Union bank. The company representative declined to confirm or deny the bank’s involvement in Tether operations to Cointelegraph, citing confidentiality reasons. The only publicly available information on the bank is included in Capital Union’s annual reports.the person added.
Founded in 2013, Capital Union had $1 billion in assets under management at the end of 2020. The bank partnered with Chainalysis in April 2022 in order to ensure the secure and compliant deployment of its crypto solutions such as trading and custody. According to the bank’s spokesperson, the Bahamas was one of the first nations to adopt a regulatory framework known as the DARE Act in 2020.
“As a locally regulated bank, this allows us to offer crypto-related services to our clients, which are financial institutions, financial intermediaries and professional investors,” the Capital Union representative said.
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