FNB has added crypto trading to its banking platform, allowing customers to buy and sell a limited selection of crypto-currencies through its existing share trading service.
The bank announced today that it has partnered with crypto exchange VALR to provide the capability.
Customers can trade Bitcoin, Ethereum, Ripple, Solana and USDT through FNB’s Share Saver, Share Builder, Share Investor and Share Zero products.
The move comes as South African banks gradually add crypto services to their offerings − something they shunned before.
Discovery Bank was the first South African bank to offer crypto-currency trading directly through its banking app, after partnering with crypto exchange Luno. The service allows customers to link their Luno accounts to the Discovery Bank app and buy, sell and hold crypto assets, including Bitcoin and Ethereum.
Absa, meanwhile, is focusing on the institutional market, partnering with Ripple to provide digital-asset custody services to corporate and institutional clients in South Africa, including the secure storage of tokenised assets and crypto-currencies.
Nedbank has partnered with Crypto.com to explore blockchain-based payment, settlement and liquidity solutions, including the conversion between rand and USDC. The rollout is planned in phases, starting with individual clients and extending to businesses, subject to regulatory requirements.
Sizwe Nxedlana, CEO of FNB and RMB Private Banking and Wealth Management, says: “FNB customers will now have access and exposure to crypto assets, with the ability to trade a set of curated coins, as well as benefit from the bank’s investment knowledge and experience.
“The digital currencies include Bitcoin, Ethereum, Ripple, Solana and USDT, a stablecoin pegged to the dollar, all available on FNB’s share trading platform.”
Trades can be made from R10, with trading available 24 hours a day, seven days a week.
Bheki Mkhize, CEO of FNB Wealth and Asset Management, adds: “We have observed a lot of activity and interest from our clients around crypto. Clients require a trusted platform, which FNB provides. This gives them access to alternative assets to help diversify their investments.”
The crypto offering is ring-fenced within the FNB ecosystem, says the bank. Customers will use funds held in their FNB accounts, while crypto assets cannot be transferred into or out of the platform.
FNB says the approach is intended to provide tighter control around security, compliance and exchange control requirements.
The bank says the decision to introduce crypto trading follows customer demand and changes in the investment market.
“We have listened to client requests for us to provide them with alternative investment solutions that will help broaden access to different asset classes with high growth potential. Crypto as an asset class offers that diversity. We believe this offering provides a safe and easy way for our customers to access crypto-currencies,” says Nxedlana.
Mkhize cautioned customers about the risks associated with the asset class.
“Investing in crypto-currency offers a unique set of potential benefits, but it's crucial to understand that it also comes with risks. We want to ensure clients understand what they are buying, investing in, the volatility and have tools to manage their trading activities,” says Mkhize.
FNB plans to provide customers with educational material on crypto through text, video and audio content.
The bank says the offering will initially be limited to the five crypto-currencies, with further investment options planned.
“This is just a start. As time goes, we will broaden our crypto offering by providing more investment options and educational content,” concludes Mkhize.
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