FNB expands into crypto investing

by TINTSWALO BALOYI
JOHANNESBURG – FIRST National Bank (FNB) has launched cryptocurrency investing on its banking platform, giving customers access to a selection of crypto assets through its existing share trading platform.

The move expands FNB Wealth and Asset Management’s alternative investment offering and follows growing customer interest in crypto assets.

FNB has partnered with VALR, a registered provider of crypto-related services, to deliver the offering.

Customers can trade Bitcoin, Ethereum, Ripple, Solana and USDT, a stablecoin pegged to the US dollar, with investments starting from R10. Trading will be available 24 hours a day, seven days a week.

Sizwe Nxedlana, CEO of FNB and RMB Private Banking and Wealth Management, said the offering would give customers exposure to crypto assets while benefiting from the bank’s investment expertise.

The service will be available through FNB’s existing Share Saver, Share Builder, Share Investor and Share Zero products.

“We have observed a lot of activity and interest from our clients around crypto,” said Bheki Mkhize, CEO of FNB Wealth and Asset Management.

“Clients require a trusted platform which FNB provides. This gives them access to alternative assets to help diversify their investments.”

FNB said the launch responded to customer requests for greater access to alternative asset classes as technology continues to reshape the investment landscape.

However, Mkhize cautioned that crypto investing carries significant risks, including volatility.

“We want to ensure that clients understand what they are buying, investing in, the volatility and have tools to manage their trading activities,” he said.

FNB will provide educational material through text, video and audio content to help customers understand crypto assets and the associated risks.

Customers will fund their crypto investments from their FNB accounts. Trading will be ringfenced within the FNB ecosystem to support security, compliance and exchange control requirements, meaning crypto assets cannot be transferred into or out of the platform.

FNB said the offering would initially focus on a curated selection of crypto assets, with plans to expand the range of investment options and educational content.

“This is just a start,” Mkhize said.

“As time goes, we will broaden our Crypto offering by providing more investment options and educational content.”

– CAJ News