French Banking Giant BNP Paribas Enters Crypto Custody Space: Sources

French Bank BNP Paribas (BNP) is entering the cryptocurrency custody space via a partnerships with Swiss digital asset safekeeping firm Metaco, according to three people with knowledge of the deal.

Crypto custody firm Fireblocks is also involved in the bank's digital asset infrastructure, according to a press release on Wednesday,

Many large banks are edging towards crypto custody, but what makes this deal particularly significant is BNP Paribas Securities Services’ position as a major global custodian with almost $13 trillion in assets under custody.

BNP Paribas did not respond to requests for comment. Metaco declined to comment.

Metaco, which recently inked a custody tech deal with French bank Societe Generale (GLE), is becoming the go-to provider for banks and institutions looking to enter the crypto space. Metaco also recently announced a deal with Citigroup (C), and previously with the likes of BBVA (BBVA), Zodia Custody, DBS and UnionBank Philippines.

BNP Paribas Securities Services recently used Fireblocks, which also works on crypto assets with custody giant BNY Mellon, in a live experiment on the settlement and custody of a non-listed digital bond in the French market.

The service Metaco will be providing for SocGen and Citi is focused on security tokens, such as tokenized versions of stocks or other financial instruments, with less of an emphasis on pure cryptocurrencies.

This is a popular trend among French banks as they enter the digital asset space, explained Metaco CEO Adrien Treccani in a previous interview with CoinDesk.

UPDATE (20 July, 09:20 UTC): Adds Fireblocks confirmation in the second paragraph. Adds additional details in sixth paragraph.