Absa Becomes First African Bank to Launch Digital Asset Custody

Absa Group has become the first African bank to offer institutional digital asset custody, deploying technology from Ripple to provide secure storage, administration, and transfer services for Bitcoin, Ethereum, the XRP Ledger, and USDC to institutional clients in South Africa. The Johannesburg-based lender launched the service on September 21 after receiving approval from South African regulators, targeting asset managers, non-bank financial institutions, and corporates.

The new offering arrives as demand for regulated digital asset infrastructure grows. By the end of 2024, crypto assets held across South Africa’s top three licensed providers—Luno, VALR, and Ovex—surged past 25.3 billion rand (roughly $1.5 billion), more than doubling from the under 10 billion rand recorded at the start of 2023. According to Absa, the worldwide digital asset custody market exceeded $683 billion in value during 2024 and is projected to hit at least $4.3 trillion by 2033. Rob Downes, head of digital assets at Absa’s corporate and investment banking unit, noted that Bitcoin is the predominant asset in custody, and mentioned that the bank is working with clients to support other requested crypto assets.

Absa Plans to Extend Digital Asset Custody Services

The platform currently supports Bitcoin, Ethereum, the XRP Ledger, and USDC, with plans to add more digital assets as demand develops. Absa’s partnership with Ripple began in October 2025, when the companies announced plans to provide institutional digital asset custody services in South Africa, marking Absa as Ripple’s first major custody partner in Africa.

Downes stated that the bank plans to extend the services beyond its current client base. We expect to extend this to other client segments in South Africa in due course, and are actively working on bringing the solution to some of our other African presence countries in line with regulatory approvals required, Downes said.

Regulated Infrastructure

The service is designed for institutional and large business clients rather than retail cryptocurrency users, allowing eligible customers to hold and transfer digital assets through infrastructure operated within a regulated banking environment. Absa’s offering combines digital asset technology with existing banking controls around governance, security, compliance, and operational resilience.

Through this rollout, the bank also establishes a foundation to investigate further blockchain-based financial solutions, encompassing digital payments, stablecoins, digital securities, and tokenisation.

Regulatory Approvals Ahead

While the service went live in South Africa following regulatory clearance, extending the custody solution to other African countries remains contingent on regulatory approvals and market demand in each respective jurisdiction.