In a groundbreaking move, France’s fifth largest banking institution, the BPCE Group, is preparing to introduce Bitcoin and cryptocurrency investment services for its clientele by the year 2025. The launch will be facilitated through its crypto-focused subsidiary, Hexarq, contingent upon gaining the green light from the Autorité des Marchés Financiers (AMF), the official financial markets regulator in France. This strategic initiative will be rolled out across the Banque Populaire and Caisse d’Épargne networks, as highlighted in a report by The Big Whale.
BPCE to Offer Crypto Services Through Hexarq App
Hexarq, a pivotal player in the BPCE Group’s digital asset strategy, recently achieved a significant milestone by obtaining the PSAN (Prestataire de Services sur Actifs Numériques) authorization. This certification empowers Hexarq to legally engage in the digital asset market within France. By becoming the fourth company and the second banking entity in France to secure this approval, following in the footsteps of SG Forge, Hexarq is well-positioned to navigate the burgeoning crypto landscape.
The PSAN authorization is a crucial regulatory framework designed to oversee and regulate digital asset service providers in France. With this approval, Hexarq is authorized to manage, buy, sell, and exchange digital assets, paving the way for BPCE’s customers to explore the world of cryptocurrencies seamlessly. The services will be accessible through an innovative app crafted by Hexarq, targeting users within the Banque Populaire and Caisse d’Épargne networks.
Hexarq, established in 2021, is steering BPCE’s foray into the digital asset domain after years of maintaining a low-profile presence in the sector. The BPCE group, a titan in the European banking landscape, ranks among the top 10 largest banks in the region, underscoring its influential role in the financial industry.
France Makes History
In a historic development, France has emerged as the first major economy within the European Union to accept applications for crypto asset service provider licenses under the pioneering Markets in Crypto Assets (MiCA) regulation. This landmark move signals France’s proactive stance in embracing and regulating the rapidly evolving cryptocurrency industry.
The AMF commenced the application process on July 1, 2024, well ahead of the MiCA regulations scheduled to come into effect on December 30, 2024. This forward-thinking approach positions France at the forefront of implementing comprehensive crypto regulatory frameworks within the EU, setting a precedent for other countries to follow.
An insider from BPCE disclosed that the introduction of this service will enable the bank to retain clients’ assets previously diverted to exchange platforms, as well as attract new customers eager to explore cryptocurrency investments. While BPCE’s investment banking arm, Natixis, is not currently part of this cryptocurrency initiative, it remains focused on market infrastructure and the tokenization of financial assets. Notably, Natixis played a role in the issuance of a 100 million euro bond on the blockchain by Caisse des Dépôts in November, highlighting its commitment to leveraging blockchain technology for financial innovations.
As BPCE Group prepares to enter the cryptocurrency market, its strategic approach and regulatory compliance underscore a significant shift in the banking industry, promising to transform the way customers engage with digital assets in France and beyond.
