Commonwealth Bank has announced that it will become the first major Australian bank to allow clients to buy, sell and hold cryptocurrencies through its products.
The bank released a statement Wednesday, saying it had partnered with crypto exchange regulator Gemini to design a service for the CommBank app.
It will allow clients to access crypto assets, including Bitcoin, Ethereum, Bitcoin Cash, and Litecoin.
The pilot will begin in the next few weeks before it rolls out to more clients next year.
"The emergence and growing customer demand for digital currencies creates challenges and opportunities for the financial services sector, which has seen a significant number of new players and business models innovating in this area," said Matt Comyn, CEO. from Commonwealth Bank, in a statement.
“We believe that we can play an important role in crypto to address what is clearly a growing need from customers and provide capacity, security and trust in a cryptocurrency trading platform.
Dave Abner, Gemini's global director of business development, said the partnership "will set a new standard for banks and financial platforms in Australia."
"We are proud to provide exchange and custody services to CBA as they begin to unlock access to cryptocurrency investments for many Australians," he said.
The move also included blockchain data and analytics company Chainalysis.
"Customers have raised concerns regarding some of the crypto services on the market today, including the friction of using third-party exchanges, the risk of fraud, and a lack of trust in some new providers," Comyn said. .
"That is why we see this as an opportunity to provide a reliable and secure experience for our customers."
Experts react
Australia is becoming a leader in cryptocurrencies, industry experts say, following the Commonwealth Bank's decision to allow digital currency trading.
The head of cryptocurrency exchange BTC Markets, Caroline Bowler, said it was a red letter day for technology.
He said the bank was one of the largest financial institutions in the world and would offer the currency to millions of customers.
This put Australia in a leading position in cryptocurrencies, Bowler said.
She tipped other banks and retirement fund managers to follow her.
Payment giants such as PayPal and Square, which owns Afterpay, already allow customers to trade cryptocurrencies.
Commonwealth Bank leaders are wary of these providers turning young people away from established banks.
The founder of the Finder comparison service, Fred Schebesta, said that more people would trade cryptocurrencies as banks and regulators accepted it.
About 3.3 million Australians own or trade digital money, according to a Finder study.
Finder allowed users to trade through its app this year and Schebesta said the uptake had been incredible.
However, it had a warning for users.
"People should be sure to compare the fees involved with cryptocurrency trading as they can vary drastically between providers."
