Based in the Bahamas, Capital Union is a bank that has become active in the crypto industry. It is reportedly the bank where the issuer of the USDTstablecoin, Tether, has chosen to keep a part of their reserves. On Tuesday, a spokesperson for the bank disclosed that they had launched crypto custody and trading services for their clients that were part of the trading desk of the institution. The representative of the company disclosed that they had collaborated with a handful of liquidity providers and trading providers and had also chosen a couple of selected technology providers and custodians.
The representative further added that thanks to their assistance, the bank was able to offer support for a number of digital assets when offering crypto custody and trading services. It should be noted that the crypto-related services that the bank is offering makeup only a small portion of the rest of its business. For the most part, Capital Union follows the traditional model for banks where it offers investment and wealth management services to its clients. However, it should be noted that the representative did not shed any light on the cryptocurrencies that would be available on the Capital Union platform and did not disclose a date of launch either.
The spokesperson stated that Capital Union does not have a directional perspective on the crypto space, or even any specific cryptocurrencies. The only reason they had decided to venture into this space was that the banking institution is future-conscious and wanted to offer its professional clients the option of trading in the crypto space, if that is what they want. The representative also revealed that the bank had been working on developing their capabilities pertaining to blockchain transactions because they believe that this is one area that will cause a great deal of changes in the financial landscape.
The crypto-related remarks from the Capital Union come after a report on Monday mentioned that Tether uses the bank for storing some of its reserves. However, a representative of the company did not deny or confirm the connection because of confidentiality purposes. The person did say that the annual reports of Capital Union provide the information that is publicly available. Capital Union was launched back in 2013 and by the end of 2020, the total value of assets managed had reached $1 billion. In April of this year, the bank had entered into a partnership with Chainalysis.
The reason behind this partnership was to ensure that its crypto solutions, including custody and trading, could be launched in a compliant and secure manner. The spokesperson of the bank also said that Bahamas had been one of the first countries that adopted the DARE Act, which is a regulatory framework. This happened back in 2020 and enables the bank to offer crypto-related to its clients, thanks to local regulation. This means that professional investors, financial intermediaries and other institutions in the financial industry can take advantage of its crypto solutions.