South African Banks Embrace Crypto With New Services

• Discovery Bank: Announced a partnership with crypto exchange Luno in late 2025 to allow clients to buy, sell, and store crypto directly within their banking app, citing the asset class’s increasing maturity.
• Absa Group: Plans to launch a digital asset custody solution for business and corporate clients in 2026. According to Robert Benvenuti, CIO for data and applied AI, the bank will also run proofs-of-concept for stablecoins and tokenization during the year.
• Industry Consortium: A group including Luno, Sanlam, EasyEquities, and Lesaka launched ZAR Universal (ZARU), a Rand-pegged institutional-grade stablecoin designed to modernize the country’s payment infrastructure.
• Standard Bank: Continues to engage with the ecosystem through research rather than direct product offerings. The bank co-authored the African Blockchain Report with Crypto Valley Venture Capital, highlighting South Africa’s role as a major blockchain market in Africa.
• First National Bank (FNB): Welcomes the increased regulatory certainty and is, according to FNB Nav CEO Johan Maree, “continually looking at broadening our investment offerings,” considering a crypto product if it can be delivered simply and safely.

The shift from passive research to active product development by major players like Absa and Discovery represents a pivotal moment for crypto adoption in South Africa. By integrating digital asset services into trusted banking platforms, these institutions are lowering the barrier to entry for a mainstream audience and lending significant legitimacy to the asset class. The strategies are notably diverse: Discovery is targeting the retail investor with an accessible in-app experience, while Absa’s focus on custody and tokenization for corporate clients points to a deeper, infrastructural play. This two-pronged approach suggests the market is evolving to serve both individual and institutional needs simultaneously. Furthermore, the launch of the ZARU stablecoin by a consortium of established financial firms is a clear indicator of a move to build foundational, blockchain-based financial rails within the local economy, potentially challenging traditional payment systems.

Despite the forward momentum, the approach is far from uniform across the sector. The cautious stances of Standard Bank and FNB highlight that significant reservations remain. Their focus on research and conditional consideration suggests concerns about market volatility, evolving global regulations, and the operational complexities of securing and managing digital assets at scale. Standard Bank’s position, as articulated by group CIO Jörg Fischer, emphasizes understanding potential efficiencies before committing to consumer-facing products. This divergence indicates that the industry has not yet reached a consensus on the risk-reward profile of direct crypto engagement. The success of the early movers is not guaranteed and will be heavily scrutinized by these more conservative institutions as they weigh their own entry into the market.

The primary indicator to monitor will be the launch and client uptake of Absa’s institutional custody solution in 2026, which will serve as a bellwether for corporate interest in digital assets in the region. Equally important will be the adoption metrics for Discovery Bank’s retail offering and the real-world transaction volume of the ZARU stablecoin. We should also watch for any definitive product announcements from FNB, which would signal that another of the “big four” banks is ready to fully commit. Finally, any new directives or licensing frameworks from South Africa’s Financial Sector Conduct Authority (FSCA) will be critical, as regulatory developments have been the key catalyst for the current wave of innovation and will continue to shape the landscape.

• Regulatory progress is the primary enabler unlocking crypto-related product development within South Africa’s traditional banking sector.
• Financial institutions are pursuing distinct strategies, from retail trading and custody to foundational infrastructure like stablecoins, indicating a multi-faceted market approach.
• The involvement of established banks is moving digital assets from a niche alternative to a potentially integrated component of mainstream finance.
• A clear divide remains between early adopters (Absa, Discovery) and more cautious observers (Standard Bank, FNB), reflecting ongoing risk assessments.
• The development of a Rand-pegged stablecoin by a financial consortium underscores a serious ambition to leverage blockchain for payment modernization.