Italy’s Ripple Partner Intesa Sanpaolo Expands Digital Assets Desk for Crypto Spot Trading

Intesa Sanpaolo SpA, Italy’s largest bank, is widening the scope of its digital assets desk to include spot trading for cryptocurrencies.

The Milan-based lender has already been involved in trading crypto options, futures, and ETFs in its corporate and investment banking division’s broader blockchain initiatives.

Intesa Prepares for Spot Trading: Could This Open the Door for Institutional Crypto Transactions?

According to Bloomberg, the company now has the internal approvals and technical setup needed to enter the spot market, sources familiar with the matter disclosed.

Italy's biggest bank is expanding the remit of its digital assets desk to handle spot trades with cryptocurrencies https://t.co/ZHplffcHY4

— Bloomberg Markets (@markets) November 14, 2024

Intesa Sanpaolo was established in 2023. Its proprietary crypto trading desk, which is focused on derivatives trading, utilizes a four-person team led by quant trader Niccolò Bardoscia.

While spot trading is not yet live, the four-person team reportedly received technical readiness a month ago.

Intesa collaborated with Ripple Custody, formerly Metaco, to facilitate tokenized asset custody.

Cassie Craddock, Ripple’s managing director for the UK and Europe, confirmed the partnership, highlighting the bank’s readiness for tokenized asset management.

However, a spokesperson for Intesa declined to comment on specific details.

Intesa’s crypto trading activities are limited to proprietary trading, meaning it trades with its own capital rather than on behalf of clients.

These activities also lay the groundwork for Intesa to engage in institutional trading of digital assets with clients in the future.

Intesa’s move into spot crypto trading coincides with Italy’s consideration of tax revisions that could reduce levies on crypto trades.

Meanwhile, the European Union is progressing toward its first comprehensive crypto regulatory framework, which could encourage more large-scale institutions to enter the sector.

Intesa’s expansion mirrors a growing trend among traditional financial institutions exploring crypto and blockchain technology.

Crypto’s New Frontier: Intesa Leads Italy’s Digital Bond Issuance, but Who’s Next?

In July, Intesa was the sole institutional investor in Cassa Depositi e Prestiti’s digital bond issuance, marking a significant step in digital asset adoption in Italy.

Major players like BlackRock and JPMorgan Chase & Co. are delving deeper into crypto. BlackRock, managing over $42 billion in its Bitcoin-backed ETF, aims further to integrate its money-market digital coin into crypto derivatives trades.

Meanwhile, JPMorgan is set to offer instant settlement for forex conversions on its blockchain platform, with plans to support additional currencies.

On November 12, 2024, Fideuram Intesa Sanpaolo Private Banking (FISPB), the private banking division of Intesa Sanpaolo, announced a strategic partnership with asset management giant Blackrock to boost its digital wealth management presence across Europe.

The initiative will first focus on Belgium and Luxembourg, key growth regions for Intesa Sanpaolo Wealth Management.

Through this collaboration, FISPB aims to expand its European client base by offering digital brokerage, hybrid advisory, and discretionary portfolio management.