Absa Introduces Groundbreaking Bitcoin Custody Services for Banking Clients in Africa

Absa has emerged as the pioneering bank in Africa to provide Bitcoin custody, with BTC representing the largest portion of assets managed through its institutional service.

On October 2, Bloomberg reported that the Johannesburg-based bank is offering digital asset custody services to institutional clients in South Africa, including asset managers, non-bank financial institutions, and corporate clients. The report noted Absa as the first bank in Africa to offer such services. Rob Downes, head of digital assets at Absa’s Corporate and Investment Banking division, disclosed that Bitcoin constitutes the majority of the assets currently held.

Absa’s Bitcoin custody service begins with institutional clients

Commenting on the assets managed through the platform, Downes noted to Bloomberg:

“Bitcoin is the predominant asset in custody.”

He also mentioned that the bank is collaborating with clients on other crypto assets they wish to include in its South African custody offerings. His statements highlight Bitcoin’s central role in the current offerings and underscore client demand as a factor in exploring additional assets.

Looking beyond its initial client base, Downes expressed that Absa expects to expand its custody services to other client groups in South Africa while also working to introduce the service in other African nations where it operates. Bloomberg noted that such expansions will depend on obtaining the necessary regulatory approvals.

According to Absa’s product documentation, the service provides institutions with oversight over digital assets, transaction management, and internal approvals. The bank defines custody as a means of safeguarding the private keys essential for authorizing blockchain transactions, integrating banking governance and compliance frameworks into its platform.

Bitcoin Magazine reported on October 2 that Absa had not responded to a request for comment regarding this development.

Ripple technology enhances Absa’s custody controls

This announcement regarding Bitcoin custody follows the commercial launch of the platform. Crypto.news previously reported on September 22 that Absa’s Ripple-powered custody service went live on September 21, nearly a year after the initial announcement of their partnership.

In October 2025, Ripple identified Absa as its first major custody partner in Africa, covering technology for the safe storage and management of digital and tokenized assets.

Describing the system’s functionality, Robyn Lawson, who leads Absa CIB’s digital product for custody, explained that the bank integrates Ripple’s transaction software with its own internal setup. She emphasized that security, governance, recovery, and authorization controls are essential components of the design.

Lawson highlighted that keys and transaction authorization processes are secured within protected hardware environments. The system generates private keys securely as needed, rather than storing them permanently, while implementing cryptographic recovery methods and layered controls to ensure access during disruptions.

For institutional clients, losing access to keys poses operational, reputational, and regulatory risks for both the institution and its customers. Lawson stated that Absa would develop its custody capabilities further according to client needs and regulatory developments.

South Africa saw $36 billion in crypto transactions

In its September 2025 regional analysis, Chainalysis ranked South Africa second in Sub-Saharan Africa for crypto value received, totaling approximately $36 billion from July 2024 to June 2025. Nigeria topped the region with $92.1 billion during the same timeframe, according to Chainalysis’ Geography of Cryptocurrency report.

Over the year, Chainalysis noted that Sub-Saharan Africa experienced over $205 billion in on-chain value, marking an increase of around 52% from the previous year. The region was ranked third for growth, following Asia-Pacific and Latin America.

Chainalysis attributes South Africa’s significant institutional market to its regulatory framework and numerous licensed virtual asset service providers. The report indicated that large transactions often resulted from trading strategies such as arbitrage, with financial institutions actively developing custody and stablecoin services.

According to the Chainalysis report, Bitcoin accounted for 74% of fiat crypto purchases in South Africa within the analyzed centralized-exchange data set. However, this analysis did not include informal markets or over-the-counter activities beyond tracked exchanges.

In its updated adoption-index approach, Chainalysis included an institutional activity metric in 2025, focusing on centralized-service transfers exceeding $1 million. This adjustment was designed to capture the involvement of professional investors, hedge funds, custodians, and other institutional users.

U.S. banks have established crypto custody services and regulatory approvals

In the U.S., the bank-based crypto custody model has already been established. BNY Mellon announced in October 2022 that its digital asset custody platform was operational, allowing a select group of clients to hold and transfer Bitcoin and Ether.

BNY Mellon later broadened the assets and functionalities available on this platform. A report published on June 29 elaborated on its USDC minting and redemption services, alongside custody and transfer options, providing institutional customers a pathway to convert dollars to Circle’s stablecoin and back again.

In March 2025, the Office of the Comptroller of the Currency confirmed that U.S. national banks and federal savings associations are permitted to engage in crypto custody, specific stablecoin activities, and certain blockchain payment actions. The agency also removed prior requirements for banks to receive non-objection before executing activities outlined in previous guidance.

In May 2025, the OCC clarified that banks may buy and sell assets held in custody at the direction of their clients. The regulator further stated that banks could outsource permitted custody and execution functions, provided third-party risks are managed appropriately.

In Europe, reports from September 16 indicated that Deutsche Bank plans to unveil an institutional crypto custody service in late 2026, expecting initial support for Bitcoin, Ether, USDC, EURC, and EURAU, contingent upon regulatory completions, internal approvals, risk management, and customer onboarding procedures.