UniCredit explores crypto asset custody and brokerage business…

What business landscape does UniCredit intend to build?

Huili Bank is exploring technology providers that can support its broader expansion into the digital asset field, with businesses covering cryptocurrency trading, custody and tokenized investment products. Currently, discussions at the Italian bank are still at an early stage, and potential business areas for consideration include digital asset brokerage, cryptocurrency custody, tokenized investment products and fixed-income securities based on stablecoins.

The project shows that Huili Bank is examining infrastructure to enable it to provide digital asset services within the existing banking framework, rather than relying entirely on external crypto platforms. The choice of technology providers is crucial because the custody, settlement and compliance requirements for digital assets are significantly different from traditional securities. As of now, the bank has not identified specific providers and has not disclosed a launch timetable for any proposed services.

It is worth noting that the range of products evaluated by the bank is very broad. Cryptocurrency custody and brokerage business will allow Huili Bank to directly enter the mature digital asset market; while tokenized investment and fixed-income products linked to stablecoins will bring the bank closer to the institutional-level tokenized market developed around traditional financial products.

Why are fixed-income products based on stablecoins important?

Taking into account fixed-income securities based on stablecoins means that their application scenarios go beyond the basic function of allowing customers to buy and hold cryptocurrencies. Stabiloins can be used as settlement assets for tokenized securities, allowing payments and transfers to take place on blockchain infrastructure without relying on traditional bank business hours. Combined with tokenized bonds or other fixed income instruments, this could shorten settlement times and allow assets and cash to flow through the same digital infrastructure.

However, for banks, this opportunity comes with additional requirements. Custody arrangements must protect private keys and customer assets, while trading systems require strict controls over execution, liquidity, market access and regulatory reporting. Therefore, integrating these functions into a bank's existing compliance and risk systems often requires dedicated underlying infrastructure rather than simply connecting to a crypto exchange.

Investor revelation

Huilbank's interest far exceeds basic cryptocurrency trading. A platform capable of integrating custody, brokerage, tokenized investment and stablecoin settlement will provide banks with infrastructure in a single regulated banking environment, thereby supporting the development of multiple digital asset businesses.

How can other banks expand their digital asset business?

Huili Bank's search operation comes as major banks move away from limited blockchain experiments to customer-facing transaction, custody and payment products.

• U.S. Bank: This week it completed a cross-border payment test using its own USDC stablecoin. The deal demonstrates how banks can test stablecoins for payments alongside existing deposit and settlement infrastructure.
• Standard Chartered: adopted a more direct trading strategy. The London-based bank launched spot bitcoin and Ethereum trading services for institutional clients in United Arab Emirates on September 3, a further expansion based on the introduction of digital asset custody services in the region in September 2024.
• Bank Leumi: has partnered with Galaxy Digital to provide Bitcoin, Ethereum and Solana trading services through its investment platform. The service is expected to be launched in early 2027.

These projects demonstrate a variety of different banking strategies: some institutions focus on stablecoin payments, others focus on custody and institutional transactions, and still others integrate cryptocurrencies directly into existing investment platforms.

What might be the next step for Huili Bank?

Huili Bank's future development direction will largely depend on the technology providers it chooses and the services it prioritizes. If a "trusteeship first" strategy is adopted, it can lay the foundation for subsequent transactions and tokenized investment products, because banks must ensure the safe storage of assets before providing a wider range of digital asset services. If Huili Bank chooses to connect customers to external liquidity rather than build its own market infrastructure, then brokerage infrastructure will become a fast path to customer transactions. Tokenized investment products will allow banks to more deeply integrate traditional securities and blockchain settlement systems. If institutional market demand for digital securities that can be issued, transferred and settled grows, fixed-income products based on stablecoins will become particularly important.

The project is still in the exploratory stage, so there is no indication that all of the services under discussion will eventually be launched. Still, Huilbank's search operation has brought another major European bank to examine how cryptocurrency assets, tokenized securities and stablecoins integrate into traditional banking infrastructure. The next key point to watch is whether the bank will select technology partners and shift from infrastructure discussions to a clear product launch plan.