CBA (ASX: CBA) share price rises and predicts crypto in app
The Commonwealth of Australia Bank (ASX: CBA) The share price is on the rise as the bank plans to offer the crypto in its CommBank app.
ABC’s plans for crypto
The Big Four ASX banks have announced that they plan to become the first Australian bank to offer customers the ability to buy, sell and hold crypto assets in the CommBank app.
ABC doesn’t do this on its own. It partners with one of the world’s largest regulated cryptocurrency exchanges and custodians, Gemini, and leading blockchain analytics firm, Chainalysis.
The bank said these partnerships have enabled it to design a cryptocurrency exchange and custody service that will be offered through a new feature in the app.
CBA decided to do so because “a large number of its clients want to access crypto assets as an investment class and are already buying, selling and holding crypto assets through a variety of crypto exchanges.”
When does this happen?
The pilot will start in the “coming weeks”. CBA plans to gradually deliver more features to more customers in 2022. CBA will provide customers with access to up to ten selected crypto assets, including Bitcoin, Ethereum, Bitcoin Cash, and Litecoin.
CBA leadership’s thoughts on crypto
CBA CEO Matt Comyn said: “The emergence and growing demand for digital currencies from customers creates both challenges and opportunities for the financial services industry, which has seen a significant number of new players and business models innovate in this area.
“We believe we can play an important role in crypto to meet what is clearly a growing customer need and provide capability, security and confidence in a crypto trading platform.”
“We remain committed to reinventing the bank and will continue to bring more functionality to the CommBank application, particularly in terms of investing and purchasing. “
Reflections on this movement by the ABC
It’s a fascinating decision from Australia’s largest bank. CBA has a reputation for doing things tech first, ahead of its competition, but it’s a bold move.
In some ways, cryptocurrency is a disruptor for banks, so it’s interesting to see CBA getting so involved in crypto by integrating it into its app.
I’m not sure what impact this will have on ABC, but I certainly think it makes it more relevant to clients. It will be interesting to see what happens next and what other banks National Australia Bank Ltd (ASX: NAB), Australia and New Zealand Banking Group Ltd (ASX: ANZ) and Westpac banking company (ASX: WBC) do.