In 2017 the head of Italy’s biggest retail bank Intesa Sanpaolo called digital assets a ‘speculative bubble’. Today the bank is testing the same digital assets. The first time an established European bank has undertaken anything like this. Today we explore why Italy’s largest bank is embracing bitcoin.
Yesterday marked a year since the first bitcoin ETFs were issued in the U.S. A tremendous amount of disruption has resulted in capital markets. However, even with the largest asset managers in the U.S. embracing cryptocurrencies, Europe is slower off the mark.
With this traditionally cautious approach it is no surprise that Intesa Sanpaolo has only acquired 11 bitcoins so far. At a business conference this week, CEO Carlo Messina said a proprietary investment in bitcoin that his bank carried out this week was mainly a test; in order to be prepared should customers ask for this type of asset.
“We won’t become a bitcoin player,” Messina told reporters after an event. “As a wealth management company that has the ambition to become like (Swiss rival) UBS, we have very sophisticated clients that may ask for this kind of investment, and you can’t serve them unless you have a presence (in the market).”
What Led to the Decision to Embrace Bitcoin by Intesa Sanpaolo
For the first nine months of 2024 Intesa Sanpaolo recorded its best nine months ever. Results were impressive across the board including operating income, operating margin, and gross income.
Intesa Sanpaolo has also submitted a business plan for 2022 – 2025. In it, the bank highlights how it has ambitions to be a wealth management, protection and advisory leader in Europe. It doesn’t mention ‘alternative investments’ anywhere, let alone a desire to embrace bitcoin.
Things are changing in Europe. The Swiss central bank is under pressure to hold bitcoin. UBS is also opening to the world of digital assets. The leading Swiss bank, UBS, bought some bitcoin ETFs in 2024; however the bank’s senior leadership team remains sceptical when it comes to the speculative nature of cryptocurrencies.
For now the European Central Bank appears to be on the fence. In fact, in October last year, a paper published by ECB experts suggested that bitcoin’s price appreciation could be “fuelling the division of society.” Why? Because latecomers to the crypto party will lose out.
Intesa Sanpaolo is making sure that it’s customers won’t be amongst the latecomers. Let’s hope other European banks follow suit.
Author: Andy Samu
#Bitcoin #IntesaSanpaolo #Italy #WealthManagement #Banking
See Also:
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Is Bitcoin (BTC) A Safe Haven Currency? | Disruption Banking
Larry Fink: Is The BlackRock CEO Leading Bitcoin’s Charge To Wall Street? | Disruption Banking
