Main Points:
- BBVA’s advisory to wealthy clients: Recommends 3–7% portfolio allocation to Bitcoin and Ether, reflecting growing institutional confidence in digital assets.
- Regulatory green lights: BBVA secures CNMV approval in March 2025 to offer trading and custody of BTC and ETH via its mobile app.
- Santander’s stablecoin exploration: Early‐stage plans to issue dollar- and euro-pegged tokens through Openbank, pending MiCA licenses.
- Broader institutional embrace: Major banks (e.g., SocGen, Deutsche Bank) and corporates (e.g., Walmart, Amazon) are eyeing stablecoins amid evolving U.S. and EU frameworks.
- Expert warnings and risk management: ECB’s Fabio Panetta highlights reputational risks; regulators caution investors on crypto volatility.
- Future outlook: Integration of blockchain into traditional finance will accelerate under MiCA and potential U.S. stablecoin legislation, reshaping payment systems and wealth management.
BBVA’s Bold Crypto Advisory
Spanish banking giant BBVA has taken the rare step of formally advising its private-banking clients to allocate a portion of their wealth portfolios to cryptocurrencies. At London’s DigiAssets conference on June 17, Philippe Meyer, Head of Digital & Blockchain Solutions at BBVA Switzerland, announced that the bank now recommends between 3 percent and 7 percent of portfolios be invested in Bitcoin and Ether, depending on each client’s risk appetite.
Meyer emphasized that even a modest 3 percent allocation can meaningfully enhance portfolio returns without introducing disproportionate risk: “If you look at a balanced portfolio, if you introduce 3 percent, you already boost the performance. At 3 percent, you are not taking a huge risk”. This marks a notable shift from BBVA’s conservative stance prior to September 2024, when the bank began actively advising on Bitcoin for its wealthiest clients.
While many private banks execute cryptocurrency trades upon client request, only a handful have openly endorsed strategic allocations. BBVA’s public recommendation underscores growing institutional confidence as Bitcoin reached new highs in May 2025 and Ether also staged strong recoveries from 2022 lows.
Regulatory Approvals and Service Expansion
BBVA’s advisory announcement follows a series of regulatory milestones. On March 10, 2025, BBVA received approval from Spain’s securities regulator, the Comisión Nacional del Mercado de Valores (CNMV), to offer Bitcoin and Ether trading and custody services within its mobile banking app. This authorization, granted under the EU’s Markets in Crypto-Assets (MiCA) framework, allows BBVA’s Spanish clients to buy, sell, and securely manage BTC and ETH directly alongside traditional banking products.
The rollout will begin with a select group of users before expanding to all private banking clients in the coming months. BBVA plans to leverage its in-house cryptographic key custody platform, maintaining full control over customer assets without relying on third-party custodians. This integrated approach aims to deliver a seamless user experience and bolster trust by combining blockchain innovation with the security assurances of an established bank.
Having first offered crypto services in Switzerland (June 2021) and Turkey (January 2025), BBVA’s Spanish expansion positions it among the pioneering global banks to embed digital assets across its core offerings. The bank also intends to broaden its advisory to include additional cryptocurrencies beyond Bitcoin and Ether later in 2025.
Santander’s Stablecoin Ambitions
Following BBVA’s lead, Banco Santander SA—the third-largest bank in the Eurozone—has quietly outlined plans to enter the stablecoin arena. According to a May 29 Bloomberg report, Santander’s digital arm, Openbank, has applied for MiCA licenses to offer both dollar- and euro-pegged stablecoins, as well as broader retail crypto services.
These early-stage stablecoin initiatives reflect a broader industry trend: firms like France’s Societe Generale and Germany’s Deutsche Bank are already launching or planning tokenized fiat assets. SocGen’s digital subsidiary SG-FORGE introduced a Euro-pegged token in 2023 and announced in June 2025 a new dollar-backed stablecoin “USD CoinVertible,” set to begin public trading on Ethereum and Solana in July 2025.
Santander’s potential stablecoin would aim to facilitate seamless cross-border payments and retail crypto access via Openbank’s app. The move follows MiCA’s entrance into force in early 2025, which provides a comprehensive regulatory framework for crypto-asset service providers across the EU. Openbank’s license applications suggest Santander could launch its crypto and stablecoin offerings as early as late 2025, subject to regulator approvals.
Broader Institutional Trends in Crypto
BBVA and Santander are part of a larger wave of traditional financial institutions embracing blockchain technology and digital assets. In the United States, the proposed GENIUS Act aims to regulate stablecoins—spurring interest from corporates and banks alike. Reuters reports that Bank of America, Morgan Stanley, and other major U.S. banks are exploring pilot stablecoin projects, while retail giants such as Walmart and Amazon assess tokenized payments.
Within Europe, 95 percent of banks have historically shunned crypto, according to ESMA, but this figure is rapidly changing under MiCA’s clarity and institutional demand spurred by Bitcoin’s 2025 rally. Deutsche Bank is participating in ALLUnity, a joint stablecoin venture slated for regulatory approval in 2025, and Standard Chartered is collaborating on a Hong Kong–based token initiative.
Meanwhile, traditional financial infrastructure providers, including SWIFT and the ECB, are exploring blockchain-based payment rails. The ECB’s Fabio Panetta warns that improper crypto integrations could harm public confidence in banks, urging coordinated regulatory oversight and the development of a digital euro to preserve central bank money’s primacy.
Potential Risks and Expert Warnings
Despite growing adoption, regulators continue to caution about the volatility and operational risks of digital assets. The European Securities and Markets Authority (ESMA) has reiterated that investors should be prepared to lose their entire crypto investment and that bank involvement must be tempered by robust risk management frameworks.
ECB policymaker Panetta highlights reputational dangers if customers conflate unregulated crypto products with insured bank deposits, potentially triggering runs in stress scenarios. In the U.S., lawmakers remain divided: some fear stablecoins could erode banking revenues and systemic stability, while proponents argue they enhance payment efficiency and financial inclusion.
Institutions like BBVA and Santander are mitigating these concerns by limiting allocations (3–7 percent), employing in-house custody, and adhering to MiCA’s stringent governance and capital requirements. Ongoing dialogues between banks, central banks, and regulators aim to strike a balance between innovation and stability.
Outlook for Banking and Crypto Integration
The convergence of traditional banking and blockchain is poised to accelerate throughout 2025 and beyond. As MiCA’s transitional deadlines approach (July 2026 for full compliance), more European banks will likely launch crypto trading, custody, and token issuance services. In parallel, potential U.S. stablecoin legislation could catalyze domestic bank involvement, driving transatlantic coordination on digital-asset oversight.
For investors, BBVA’s 3–7 percent recommendation and Santander’s forthcoming stablecoins represent new avenues for portfolio diversification and payment innovation. Wealth managers will need to integrate on-chain analytics and secure custody solutions, while banks must invest in blockchain expertise and compliance infrastructure.
Overall, the momentum behind blockchain adoption in mainstream finance signifies a paradigm shift: from cautious experimentation to strategic integration. Traditional banks are no longer merely observers but active participants shaping the future of digital finance.
