$2.4T Crédit Agricole Scores Crypto Custody License as Biggest Banking Giant in Europe – Will It Drive BTC Price to New ATH?

• CACEIS, an asset servicing branch of Crédit Agricole and Santander, has received approval from French regulators to offer crypto custody services.
• The authorization from France’s Financial Markets Authority (AMF) positions CACEIS among firms such as Societe Generale’s Forge and AXA Investment Managers, acknowledged under one of Europe’s most progressive crypto regulatory frameworks.

CACEIS, the asset servicing wing of banking powerhouses Crédit Agricole and Santander, has won approval from French authorities to extend its services to crypto custody. This positions the firm amidst a select few traditional finance entities diving headfirst into the digital asset landscape.

As per the France’s Financial Markets Authority (AMF) website, CACEIS Bank, a provider of asset management services for entities including insurers, pension funds, and private equity, has been granted this regulatory status as of Tuesday, June 20.

The authorization aligns CACEIS with other finance stalwarts such as Societe Generale’s Forge and AXA Investment Managers. These firms are recognized under one of Europe’s most forward-thinking regulatory frameworks for cryptocurrencies. Meanwhile, the European Union gears up to introduce new crypto licensing regulations, known as MiCA, in 2024.

Rumors have been circulating since 2021 that CACEIS, which has 4.6 trillion euros ($5.1 trillion) in assets under custody, was eyeing the crypto regulatory status.

AMF’s registration is a prerequisite for entities offering crypto custody, trading, or exchange services in France. Notably, Binance, the world’s largest crypto exchange, is presently under scrutiny from French regulators for purportedly providing services before obtaining approval in 2022.

CACEIS’s move signifies a growing trend among traditional finance institutions exploring the crypto domain. Deutsche Bank earlier this week announced its pursuit of a crypto custody license in Germany. Moreover, BlackRock, the world’s biggest asset manager, recently submitted an application to operate a Bitcoin-linked exchange-traded fund.

Despite crypto activities and exposures being deemed “insignificant” in a February survey published by the European Central Bank (ECB), it has urged banks to maintain high levels of precautionary capital for what it perceives as risky holdings.

Crédit Agricole has yet to comment on this development.