Capital Union, a Bahamas-based bank that reportedly holds a portion of the reserves of stablecoin issuer Tether (USDT), has itself been actively involved in the cryptocurrency industry.
The banking institution has rolled out crypto trading and custody services to its professional clients as part of the bank’s trading desk, a Capital Union spokesperson told TSTIME on May 31.
“We work with a few select trading platforms and liquidity providers and a handful of custodians and technology providers, which allows us to support a wide variety of digital assets within our trading services and custody,” the company representative said.
Capital Union’s crypto-related services still represent a “fairly small part” of its business, which primarily focuses on providing traditional wealth management and investment services, the rep noted.
The spokesperson did not specify which exact cryptocurrencies are supported on Capital Union’s platform or when they were launched, stating:
“We don’t have a directional view on the crypto markets or specific coins, but as a forward-looking financial institution, we have chosen to allow our professional clients to trade in this new class of trading. ‘active if they wish.
According to the rep, Capital Union has also been actively working to develop “capabilities related to transactional blockchain,” as the bank expects this to be an area of “significant disruption to the financial industry.”
Capital Union’s latest remarks regarding crypto follow a May 30 report claiming that Tether held some of its reserves at Capital Union bank. The company’s representative declined to confirm or deny the bank’s involvement in Tether’s operations at TSTIME, citing confidentiality concerns. The only publicly available information from the bank is included in Capital Union’s annual reports, the person added.
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Founded in 2013, Capital Union was managing $1 billion in assets at the end of 2020. The bank partnered with Chainalysis in April 2022 to ensure the safe and compliant deployment of its crypto solutions such as trading and keep. According to the bank’s spokesperson, the Bahamas was one of the first nations to adopt a regulatory framework known as the DARE Act in 2020.
“As a locally regulated bank, this allows us to offer crypto-related services to our clients, who are financial institutions, financial intermediaries and professional investors,” the Capital Union representative said.