Major Bank Launches Crypto Investing

FNB has launched Crypto Investing through its banking platform giving customers seamless and secure access to an emerging asset class. Clients will be able invest through the FNB share trading platform, broadening its investment solutions to cater for the need of its clients. The move is in response to customer feedback and keeping up with the everchanging investment landscape driven by technology and FNB has partnered with VALR, a registered provider of crypto related capabilities.

Sizwe Nxedlana, CEO of FNB and RMB Private Banking and Wealth Management says, “FNB customers will now have access and exposure to crypto assets, with the ability to trade a set of curated coins, as well as benefiting from the bank’s investment knowledge and experience. The digital currencies include Bitcoin, Ethereum, Ripple, Solana and USDT a stablecoin pegged to the Dollar, all available on FNB’s share trading platform.”

Customers will be able to trade from as little as R10, unlocking a world of freedom for trading that is available 24 hours a day, 7 days a week. This further helps FNB’s objective to democratize investments and cater for its broad client base

Bheki Mkhize, CEO of FNB Wealth and Asset Management says, “we have observed a lot of activity and interest from our clients around crypto. Clients require a trusted platform which FNB provides, this gives them access to alternative assets to help diversify their investments.”

FNB clients will have access to crypto assets across the bank’s existing share trading products – Share Saver, Share Builder, Share Investor, and Share Zero.

Blockchain-based technologies are making significant inroads into Africa’s financial landscape. Once dismissed as a niche technology primarily associated with cryptocurrency shakedown, blockchain has shed its fringe image.

Regulators are now issuing more licenses to respective financial institutions thereby supporting and regulating the sector. This shift is partly driven by the growing recognition and involvement of major fund managers like BlackRock, the world’s largest asset manager, signalling blockchain’s maturity beyond just powering cryptocurrencies like Bitcoin.

Governments are also slowly implementing clearer tax laws and regulatory frameworks, which can lend more legitimacy and confidence to the market. “We have listened to client requests for us to provide them with alternative investment solutions that will help broaden access to different asset classes with high growth potential. Crypto as an asset class offers that diversity. We believe this offering provides a safe and easy way for our customers to access crypto currencies,” says Nxedlana.

“Investing in cryptocurrency offers a unique set of potential benefits, but it’s crucial to understand that it also comes with risks. We want to ensure that clients understand what they are buying, investing in, the volatility and have tools to manage their trading activities,” says Mkhize.

To help clients on their investment journey, FNB will support clients with valuable thought leadership and learning modules to help customers better understand this market. This is done through text based, video, as well as audio content.

The value of investing in crypto is largely tied to its potential for higher risk adjusted returns and its role in an innovative and evolving technological landscape. However, these opportunities are accompanied by risks that require careful consideration.

Clients will be able to invest using funds in their FNB accounts. To ensure security of the platform and a more conservative approach to compliance and exchange control laws, trading is ringfenced within the FNB ecosystem. Crypto assets cannot be transferred in or out.

FNB clients can now take part in this exciting market with the comfort and security they have come to know and expect from one of the country’s most trusted banks.

“This is just a start. As time goes, we will broaden our Crypto offering by providing more investment options and educational content,” concludes Mkhize.