France’s BPCE Group to Launch Crypto Investment Services in 2025

Highlights:

• BPCE Group’s Hexarq gains regulatory approval for digital asset services in France.  
• Services include crypto custody, trading, and investment options by 2025.  
• Hexarq will integrate with BPCE’s Banque Populaire and Caisse d’Épargne networks.  

BPCE Group of France, the second-largest banking group in the country, has set its eyes on offering cryptocurrency investment services by 2025. According to The Big Whale’s report, this move will be done via its subsidiary Hexarq which has recently been granted a license by the French financial markets authority the AMF.  

JUST IN: $1.5 trillion Groupe BPCE subsidiary gets approval to launch #Bitcoin and crypto investment services for its 35 million users.

Groupe BPCE is one of the largest banks in France 🇫🇷 pic.twitter.com/3hr7mTv7DF

— Bitcoin Magazine (@BitcoinMagazine) December 20, 2024

Hexarq Gains Approval for Crypto Operations

Hexarq was granted PSAN (Prestataire de Services sur Actifs Numériques) authorization by the AMF. This license enables the platform to offer a number of services such as buying, selling and holding cryptocurrencies. This makes Hexarq the fourth entity in France and the second bank following Forge from Société Générale to achieve this certification.  

This approval puts Hexarq in a legal place to participate in the French digital asset market as per the laws of France. In addition, the subsidiary will help BPCE Group enter the digital asset market and will target customers from Banque Populaire and Caisse d’Épargne.  

Integration Across Key Banking Networks

BPCE Group intends to include Hexarq’s services into its current banking networks. Coming in 2025, the Hexarq app will let customers buy, sell and store their crypto assets securely. The move aims to strengthen the existing relationship with customers and attract new ones seeking regulated digital assets management services.  

Founded in 2021, Hexarq concentrates on digital assets and tokenized real-world assets. With the approval of AMF, BPCE Group plans to become a market player in the digital asset market. The group’s move into cryptocurrency is in response to the growing need for secure and compliant investment products.  

France Leads in Crypto Regulation

France remains a clear front-runner in the EU when it comes to crypto regulation. The country began accepting applications for crypto asset service provider licenses starting from mid-2024, ahead of the planned enforcement of the MiCA regulation in December 2024.  

This regulatory environment has seen big companies such as Gemini enter the market after it was issued with a VASP license to conduct business in France. The new addition of BPCE Group is another significant milestone towards ensuring that the nation remains the leading world hub for digital asset services subject to regulation. 

Gemini crypto exchange expands into France after being granted VASP license. pic.twitter.com/3XIW1IFms4

— BULLSTREET GROUP (@Bullstreetgroup) November 19, 2024

BPCE Group is among the biggest banking organizations in Europe, with more than 35 million clients in different countries. This comes as financial institutions step up their involvement in the crypto sector. In addition, more traditional players get involved in the space.  

Crypto Adoption Among Financial Institutions

However, BPCE is not the only bank exploring the crypto space. Earlier this year, Forge, the investment banking arm of the Société Générale, received the approval of AMF for digital assets. Commerzbank, a German bank, introduced corporate crypto trading and custody services. Moreover, in Hong Kong, a bank called Za Bank has also enabled crypto trading through its mobile application.