Absa Becomes Africa’s First Major Bank to Offer Bitcoin Custody

Absa Group has become the first bank in Africa to offer institutional digital asset custody services, effectively adding bitcoin into the regulated banking framework. The South African bank provides local institutional clients with secure safekeeping, administration, and transfer services for digital assets.

The initiative comes as locally held crypto assets are on the rise, leading to an increased demand for institutional infrastructure that offers security, governance, and accessibility.

Absa Embraces Crypto

Absa has received approval from South African regulators to launch a custody service for digital assets. The service is intended for institutions instead of individual customers, as Absa focuses on clients requiring secure asset management.

Asset managers, non-bank financial institutions, companies, and treasury functions that need safe custody for digital assets can utilize this service. Additionally, clients will benefit from safekeeping, administration, and transfer options, allowing them to manage digital assets securely within a regulated banking framework.

According to Rob Downes, head of digital assets at Absa Corporate and Investment Banking (CIB), bitcoin is currently the primary asset under custody. Absa also supports the XRP Ledger (XRP), Ethereum (ETH), and USDC, offering clients a variety of cryptocurrencies and a popular dollar-backed stablecoin.

To ensure the secure management of digital asset private keys, Absa has partnered with Ripple for custody technology. This partnership, announced in 2025, occurred before the launch of the institutional service and established Ripple as Absa’s key custody technology provider in the region.

South Africa and Crypto

South Africa’s digital asset market is providing a strong foundation for Absa’s expansion, as regulated custody becomes increasingly important for institutions worldwide. The South African Reserve Bank reported that assets held by three major licensed providers more than doubled during 2024. 

These assets reached about $1.5 billion by the end of 2024, compared to less than $598 million in 2023. The three providers identified were Luno, VALR, and Ovex, indicating significant growth in professionally managed cryptocurrency holdings across the country. 

Absa is entering this market as institutional participation increasingly demands infrastructure that meets conventional financial controls and standards. Additionally, Absa is exploring expansion into other African markets; however, each jurisdiction will require the necessary regulatory approvals before proceeding. 

This strategy could gradually connect more African institutions with bank-based custody as digital asset regulations continue to evolve across different regions.

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