BBVA’s Swiss institutional and private banking customers, as well as those with NewGen accounts, can now manage their USDC funds on the same platform that handles traditional investments. Exchange, store, or automatically convert USDC to euros, dollars, or other currencies in near real-time.
In response to the volatility of virtual currencies such as Bitcoin and Ether, so-called “stable virtual currencies” such as Tether and DAI have appeared.
This incorporation will enable BBVA’s institutional customers to more efficiently and quickly manage their operations on crypto exchanges. Investment fund managers and other large companies often use stablecoins such as USDC to complete transactions faster. It also provides a way to hedge the volatility of other cryptocurrencies by converting assets into stablecoins that retain their value during market fluctuations.
Launched in 2018 by Circle, a global financial technology company, USDC is a stablecoin that enjoys price parity with the US dollar and leverages blockchain technology. It is a reliable option for those looking to preserve the value of their assets in a digital environment without the volatility of other crypto assets. USDC is fully backed by liquid cash and cash equivalent assets and is redeemable on a 1:1 basis with the US dollar. USDC enables fast and cost-effective transactions. Due to its liquidity and transparency, it is widely used in decentralized finance (DeFi) and digital payments. Among the top 10 stablecoins by market capitalization, only USDC is currently compliant with the Markets in Cryptoassets Regulation (MiCA), the European Union’s new comprehensive law governing cryptoassets. USDC reserves are held at regulated financial institutions with monthly third-party certification issued.
This is the third cryptocurrency that BBVA has added to its Swiss digital asset offering. Within a few months of 2021, the company launched services using Bitcoin and Ether, which are the largest in terms of market size and usage, and the most in demand by investors. In late 2023, we migrated storage functionality to Metaco’s Harmonize platform, streamlining transactions, adhering to the highest security standards, and enabling connectivity with other blockchain networks.
The bank is thus developing a solid offering that will help its customers explore new opportunities to exchange value in a digital environment, making it a pioneer among major European banks.
“We want to give our retail customers easy access to the tokenized products they are most interested in that are not accessible through traditional financial institutions. They want us to provide them with the option to guarantee the assets they manage,” explains Philipp Meyer, Head of Digital Solutions and Blockchain at BBVA in Switzerland. “We will continue to build services that analyze all the crypto assets they are investing in and provide even more innovative solutions.”
*Disclaimer: The information contained in this publication is for informational purposes only and does not constitute a solicitation, solicitation, recommendation, or offer to buy or sell any investment product, financial product, or digital asset. It is not intended to promote or provide any financial services or to carry out any other transactions of such nature.
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