First they ignore it, then they ridicule it, then they attack it and then they embrace it.

That sums up the banks’ attitude to crypto over the last decade and a half. Meanwhile, we hear that all the major banks have been hiring crypto specialists because they see which way the winds are blowing. They’re about to make the plunge and join Team Crypto.

As Moneyweb recently reported, you’ll soon be able to buy bitcoin (BTC) on your banking app. Banks will also offer digital asset wallets, probably for a fee (something crypto exchanges currently do for free). Then they will venture into crypto-backed lending, timidly at first and then aggressively.

You see what’s going to happen: the five major banks have a combined 54 million customers (many with multiple bank accounts) so they have huge retail penetration. That means more competition for the existing crypto exchanges which, to be fair, have started nibbling at the banks’ traditional markets through services like payments. 

The question is: will South Africans trust the banks with their crypto? Iqbal Surve’s businesses were de-banked for “reputational risk” and whatever you think about the morality of this, there is a danger that your ability to transact and operate in a supposedly free country can be terminated. 

Banks have become agents of the state with inordinate power to smooth or disrupt our lives.

Try to send money abroad and you are led to believe you are being granted a privilege by the state through its state agents (the banks). On this basis, your money is not really yours because the state tells you to some degree where and how much you can spend.

If ever there was a case for self-custody, here it is. 

Don’t think the crypto exchanges are going to take banks moving into crypto lying down. We would expect to see more than a few crypto service providers getting banking licences of their own, offering chequing accounts, transactional facilities, forex, credit and much more.

Then the financial markets will get really interesting. 

Internationally, we are seeing the more progressive banks moving into crypto. JPMorgan Chase, Xapo Bank, SEBA Bank and DBS Bank in Singapore all offer crypto-backed lending. In SA, you can get crypto-backed loans through Binance, VALR and Geddes Capital. 

Then there’s stablecoins. Banks see huge opportunities here. JPMorgan Chase launched JPM Coin in 2019 as a US dollar-backed stablecoin for international payments. Société Générale has launched a euro stablecoin called EUR CoinVertible (EURCV). Standard Chartered is planning to launch Hong Kong dollar-backed stablecoin. Bancolombia has a peso-linked stablecoin, while Citibank, Wells Fargo and Bank of America are all piloting US-pegged stablecoins.

The US GENIUS Act passed in June 2025 and the EU’s MiCA (effective 2024) encourage bank-issued stablecoins by requiring 1:1 reserves, audits, and KYC/AML compliance. This has opened the floodgates for the likes of Bank of America and Citibank to plan launches. Stablecoins are a potentially huge business for banks going forward. 

Bank-issued stablecoins offer instant settlement, up to 80% cost savings on cross-border payments, 24/7 availability, and transparency via the blockchain. This may not signal the end of the clunky fiat system just yet, but that day cannot be too far off.

Contact 80eight. If making or moving money (including bitcoin or stablecoins) is your game, we’ve got you covered. Let us guide you on your journey to debt-free prosperity. If you’re a business, let us explain how you can hedge your USD exposure in the most cost-effective way possible.