Major French Bank BPCE Introduces Bitcoin and Ethereum Trading in Banking Apps

Summary:
BPCE, France's second-largest banking group, has begun offering cryptocurrency trading services through its banking apps, allowing users to buy and sell Bitcoin, Ethereum, and other digital assets directly. This strategic move aims to enhance customer experience while adapting to the growing demand for cryptocurrency integration in traditional banking services.

Key Takeaways

BPCE has launched crypto trading capabilities for select users in its mobile banking apps.
The initial phase includes users from four regional banks, allowing trading in Bitcoin, Ethereum, Solana, and USDC.
Each user will have a dedicated crypto account managed by BPCE’s subsidiary, Hexarq.
BPCE's action reflects a trend among traditional banks to adapt to competition from fintech firms.
A proposed wealth tax on cryptocurrencies is currently under discussion in France, which could affect how digital assets are managed.

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BPCE's New Crypto Trading Service

BPCE, the second-largest banking group in France, has started to roll out cryptocurrency trading options within its banking apps. This makes it one of the first major banks in Europe to provide direct access to digital assets. The trading service is set to be available from Monday for selected users of Banque Populaire and Caisse d’Épargne.

Initially, this service will cater to clients of four regional banks, specifically the Provence-Alpes-Côte d’Azur branch of Caisse d’Épargne and the Île-de-France division of Banque Populaire. Approximately two million customers can now trade Bitcoin, Ethereum, Solana, and USDC directly through the apps. BPCE has opted for this limited launch to monitor the performance of the service closely and ensure a quality user experience before expanding it further.

Following this initial rollout phase, BPCE plans to broaden the service to its remaining 25 regional entities by 2026, ultimately reaching approximately 12 million clients across its retail network.

Dedicated Digital-Asset Accounts Managed by Hexarq

To facilitate the launch, each user will interact with a dedicated digital-asset account managed by Hexarq, BPCE’s crypto subsidiary. This structure allows customers to conduct trades without the need for external exchanges or third-party wallets. Each account will incur a monthly fee of €2.99, along with a trading commission of 1.5%. This arrangement keeps the service fully integrated within BPCE’s banking system, providing customers with a straightforward entry point into the world of digital assets.

The Banking Sector’s Response to Fintech Competition

BPCE’s initiative is part of a wider trend in Europe, where traditional banks face increasing pressure from fintech companies that have entered the cryptocurrency space earlier. Firms like Revolut, Deblock, Bitstack, and Trade Republic have successfully captured large customer bases that now expect easy access to digital assets.

In response, established banks are ramping up their own crypto offerings to stay competitive. For instance, BBVA now facilitates in-app trading and custody for Bitcoin and Ethereum, Openbank (a part of Santander) supports five different cryptocurrencies, and Raiffeisen Bank in Vienna is providing similar services in collaboration with Bitpanda.

Regulatory Developments and Wealth Tax Proposal

BPCE's new service coincides with ongoing discussions in France about a proposed wealth tax that would include cryptocurrencies. Lawmakers are considering classifying cryptocurrencies as "unproductive wealth," which would introduce a 1% tax on individuals holding over $2.3 million in certain assets. Although this measure expands upon the current wealth tax on real estate, it still requires Senate approval as part of the 2026 budget discussions. The outcome of this proposal may significantly affect how digital asset holders manage and declare their holdings.

Disclaimer: This content is for informational purposes only and should not be interpreted as financial advice. The opinions expressed in this article are those of the author and do not necessarily reflect the views of The Crypto Basic. Readers are encouraged to conduct their own research before making any investment decisions. The Crypto Basic is not liable for any financial losses.