French banking giant Groupe BPCE secures regulatory greenlight for crypto services Assad Jafri · 6 hours ago · 2 min read
Hexarq’s PSAN registration positions BPCE to offer secure and regulated crypto services to its 35 million customers within French banking law.
2 min read
Updated: Dec. 20, 2024 at 8:02 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Hexarq, the cryptocurrency subsidiary of Groupe BPCE, has obtained regulatory approval from France’s Financial Markets Authority (AMF) to offer crypto services to its clients in 2025, the Big Whale reported on Dec. 20.
The approval, known as PSAN registration, allows Hexarq to provide custody, buying, and selling services for digital assets under French law, paving the way for the French banking giant to offer Bitcoin (BTC) to its 35 million customers.
Cautious entry into crypto
The move marks a significant milestone for BPCE, one of Europe’s top 10 banking groups. It highlights BPCE’s cautious but strategic approach to digital finance as it expands into the crypto sector through its Banque Populaire and Caisse d’Épargne networks.
By leveraging Hexarq, the group aims to provide secure, regulated options for customers increasingly drawn to crypto platforms. This could not only help retain existing clients but also attract new ones seeking alternatives to unregulated exchanges.
Hexarq’s PSAN status marks it as one of the few regulated entities in France authorized to offer comprehensive crypto services. It is the second bank to achieve this milestone after Société Générale’s SG Forge, reflecting the growing acceptance of crypto within traditional banking.
Launched in 2021, Hexarq has operated under the radar but is now set to play a central role in BPCE’s strategy. Beyond basic transactions, Hexarq aims to offer an ecosystem of crypto services tailored to retail and high-net-worth clients.
The app-based platform is expected to roll out next year.
Parallel blockchain push
While Hexarq focuses on retail crypto services, BPCE’s investment banking division, Natixis, is carving its own niche in blockchain innovation.
In November, Natixis collaborated with Caisse des Dépôts to issue a €100 million bond on the blockchain. This aligns with Natixis’ broader strategy to explore tokenization and digital market infrastructure, keeping it distinct from Hexarq’s consumer-oriented offerings.
Natixis’ ongoing blockchain projects include developing solutions for tokenized securities, which could streamline institutional investors’ operations and expand access to illiquid asset classes. These initiatives reflect BPCE’s dual-pronged strategy: retail crypto adoption through Hexarq and institutional market transformation through blockchain.
Despite the momentum, BPCE has emphasized that a 2025 launch of crypto services is not guaranteed. A spokesperson noted that while the PSAN registration allows the bank to pursue opportunities, the rollout will depend on ongoing risk assessments.
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