Intesa Expands Cryptocurrency Desk to Include Spot Trading Operations – BNN Bloomberg

(Bloomberg) — Expanding its digital asset services, Intesa Sanpaolo SpA is now set to facilitate direct cryptocurrency transactions, marking another progressive step for the conventional banking entity into the burgeoning domain.

Within its corporate and investment banking unit, Italy’s preeminent banking institution initiated its in-house cryptocurrency trading operation in 2023, as disclosed by sources with inside knowledge. Heretofore, the desk has restricted its activities to dealing in cryptocurrency derivatives such as options and futures, in addition to crypto-focused exchange traded funds, mentioned the sources who chose to remain anonymous since the details are confidential.

The commencement of the desk’s spot trading capabilities has yet to occur; however, all requisite internal consents and technical capacities have been established roughly one month prior, assert the sources. A group of four, spearheaded by quantitative trader Niccolò Bardoscia, orchestrates the desk, with the team’s collective LinkedIn profiles corroborating this information.

Collaborating closely with Ripple Custody (previously known as Metaco), Intesa Sanpaolo has successfully developed custodial solutions for a diverse array of tokenized assets, validated by Cassie Craddock, the managing director for UK and Europe at Ripple, through an email communication.

Refraining from providing a statement, an Intesa spokesperson has not commented on the matter.

The timing of Intesa’s initiative coincides with the Italian government’s contemplation on adjusting a proposed tax increment on cryptocurrency dealings, seeking a more moderated approach. Concurrently, the European Union is on the verge of implementing comprehensive crypto regulations throughout the member states, an act anticipated to invigorate the engagement of established companies in the crypto sphere.

The cryptocurrency market has been experiencing a significant uplift. Following Donald Trump’s return to favor in the US political landscape, Bitcoin has surged approximately 30%, powered by speculations that his changed stance towards digital currencies will invigorate the sector.

Strategic Alignment

While Intesa’s present-day trading is confined to proprietary operations — utilizing its funds rather than catering to client transactions — the expansion of the desk aligns with the firm’s extensive blockchain initiatives and lays the groundwork for potential digital asset trades with institutional clients in the future, according to the sources mentioned.

Earlier in July, Intesa played a pivotal role as the underwriter and the solitary institutional investor in Cassa Depositi e Prestiti’s premiere digital bond offering in Italy.

Other leading financial institutions are also venturing into the cryptocurrency landscape and the developing market infrastructures attached to it.

BlackRock, wielding the title of the most substantial asset manager globally, has gathered $42 billion in its Bitcoin-associated exchange traded fund and is advocating for the broader use of its proprietary digital money-market coin as a pledgeable asset for crypto-based derivative transactions. JPMorgan Chase & Co. aims to extend instant forex conversion settlement services between the dollar and euro via its blockchain infrastructure, with plans to incorporate the British pound into the solution eventually.

–With contributions from Ryan Weeks and Emily Nicolle.

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