Commonwealth Bank to allow 6.5 million Australians access to cryptocurrency trading

• The Commonwealth Bank in Australia will be rolling out a pilot to enable cryptocurrency trading for ten digital assets later this year.
• The institution witnessed a growing customer demand for crypto trading and believes that it could play an important role.
• Other large banks in the country are expected to follow suit as the CBA explores options to offer crypto payments for goods and services.

The Commonwealth Bank in Australia (CBA) will start supporting ten cryptocurrencies in its banking app, including bellwether digital asset Bitcoin, Ethereum, Bitcoin Cash and Litecoin. 6.5 million users of its banking application will gain access to crypto trading services.

Australia’s largest bank to enable crypto trading

The Commonwealth Bank will become the first bank in Australia to enable cryptocurrency trading. 

The CBA partnered with leading cryptocurrency exchange Gemini and blockchain analysis firm Chainalysis to launch its digital asset services. In the coming weeks, the crypto services will be launched in a pilot for a limited number of customers.

The cryptocurrency service from the CBA is expected to fully launch in 2022, with ten major digital assets supported in its app, including Bitcoin, Bitcoin Cash, Ethereum, and Litecoin.

The chief executive of Australia’s Largest bank, Matt Comyn, said that the institution can play an essential role in the cryptocurrency market to address a clear “growing customer need.” 

Blockchain Australia believes that the other big four banks in the country will follow suit, including the National Australia Bank (NAB) and Westpac.

Jefferies banking analyst Brian Johnson commented the move to enable crypto trading as “really clever,” as the bank has a lot of youth customers. In addition, he said, “getting more people engaged with their apps with multiple functions, that makes them really sticky and can create long-term value.”

The CBA’s move to allow crypto trading marks as a significant vote of confidence in the long-term potential of the new asset class. 

Comyn also noted that cryptocurrencies have been divisive among banks, and the digital asset sector was in a state of “regulatory flux.” He highlighted that around 8% of the Australian population invested in the new asset class, and customer demand could continue to grow.

He added that the bank clarifies to customers that investing in digital assets comes with risks and warns users to invest only what they are prepared to lose.