Ripple is strengthening its foothold in Europe’s digital asset space as it partners with Spanish banking giant BBVA to offer crypto custody services. The expanded collaboration comes at a pivotal moment when European banks are preparing for the implementation of the Markets in Crypto-Assets Regulation (MiCA), set to bring comprehensive oversight to the continent’s crypto market.

The partnership will enable BBVA’s Swiss arm to integrate Ripple’s institutional custody solution, sourced from its acquisition of Metaco. With this technology, BBVA will securely hold cryptocurrencies like Bitcoin and Ether on behalf of its clients, especially targeting institutional and high-net-worth investors.

Ripple will power institutional crypto custody for BBVA Switzerland using Metaco’s solution

This move follows Ripple’s $250 million acquisition of Metaco in 2023, a company known for providing secure crypto custody infrastructure. Ripple is now leveraging this platform to help banks navigate the increasingly regulated crypto environment in Europe.

MiCA Compliance Driving Institutional Adoption

The rollout of MiCA, beginning in late 2024, is pushing financial institutions across the European Union to adopt compliant crypto services. BBVA Switzerland has long been at the forefront, having launched Bitcoin trading and custody for private clients back in 2021. With Ripple’s tech integration, it reaffirms its role as a pioneer among traditional banks embracing digital assets.

“BBVA will be using Metaco’s Harmonize platform, which enables banks and financial institutions to operate tokenized assets across jurisdictions with full regulatory alignment,” Ripple stated. According to Ripple, the Harmonize infrastructure enables seamless integration without disrupting existing core banking systems.

The chief product officer at Ripple, Markus Infanger, emphasized that global banks are quickly entering the blockchain space in preparation for MiCA. “BBVA is a strong example of what’s to come,” he said, noting that more major financial institutions are expected to follow.

Europe Emerging as Crypto Custody Hotspot

Europe’s regulated environment is positioning it as a key market for Ripple’s custody services. Several large European financial institutions, including Commerzbank, have already secured crypto custody licenses or formed partnerships to build similar offerings.

Through its acquisition of Metaco, Ripple aims to serve growing demand from institutional investors around the world. Since August 2023, Ripple has supported over 20 new clients, including major banking groups across Switzerland, the UK, and several other European countries.

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With trends aligning — new regulation, institutional demand, and infrastructure readiness — Ripple’s custodial push suggests that Europe could become a global leader in crypto asset banking. The collaboration with BBVA places Ripple front and center in ushering in this new financial era.