BPCE Spur Crypto Expansion With In-App Trading for 12M Customers

France's banking sector is entering a new phase as Groupe BPCE, the country's second-largest banking group, begins offering direct cryptocurrency trading to millions of retail customers. The service, managed by Hexarq, BPCE's licensed crypto subsidiary, allows users to trade Bitcoin, Ethereum, Solana, and USDC through their mobile banking apps. This move makes BPCE one of the first major traditional banks in Europe to integrate digital asset trading into its services.

The initial rollout targets around 2 million customers of four regional banks, including Banque Populaire Île-de-France and Caisse d'Épargne Provence-Alpes-Côte d'Azur. These users can now buy and sell cryptocurrencies without relying on third-party exchanges. The service is set to expand across all 29 of BPCE's regional banks by 2026, potentially bringing crypto trading to the bank's full 12-million-strong customer base.

Customers will pay a monthly fee of €2.99 and face a 1.5% commission on each trade, with a minimum charge of €1 per transaction. A bank insider explained that the phased launch allows BPCE to assess the service's performance before scaling it. This approach reflects the bank's cautious yet ambitious strategy in entering the crypto market. This approach reflects the bank's cautious yet ambitious strategy in entering the crypto market according to financial analysts.

Institutional Adoption and Regulatory Framework

BPCE's move aligns with a broader trend among European banks to embrace digital assets. Spain's BBVA and Santander, for instance, already offer similar services, with integrated custody for their customers. Raiffeisen Bank has also partnered with crypto firm Bitpanda to deliver crypto trading to its clients. These developments highlight the growing institutional recognition of cryptocurrencies as a legitimate asset class.

France has also taken steps to create a favorable regulatory environment. The country began accepting MiCA license applications in July 2024, making it one of the first in the EU to implement the regulatory framework ahead of its official December 30, 2024, enforcement. By adhering to these rules, BPCE aims to position itself as a trusted intermediary in the digital asset space while complying with international standards according to regulatory experts.

The introduction of crypto services by BPCE intensifies competition with crypto-focused fintechs like Revolut, Deblock, and Trade Republic. These platforms have been offering crypto trading for years and have gained traction among tech-savvy investors. By embedding these services directly into existing banking apps, BPCE aims to retain customers who might otherwise migrate to dedicated crypto platforms. The strategy also allows the bank to attract new investors seeking regulated access to digital assets.

Hexarq plays a key role in enabling this transition. As a PSAN-certified entity, it ensures that all crypto transactions comply with French and EU regulations. This regulatory clarity gives BPCE an edge over smaller banks that may struggle with compliance. The bank's strategy to integrate crypto into mainstream banking infrastructure could set a precedent for others in the region.

Policy Shifts and Future Implications

France's regulatory and tax policies will shape the long-term impact of this initiative. The French National Assembly recently passed a proposal to tax digital assets as part of a broader "unproductive wealth" tax, with a 1% levy on assets exceeding €2.3 million. This tax, still pending Senate approval, could influence investor behavior and affect the attractiveness of holding crypto assets. If implemented, it would mark a significant shift in how digital assets are treated in France.

The performance of BPCE's initial rollout will determine the pace of its expansion. If the service proves popular, the bank may accelerate its plans to reach 12 million customers by 2026. Analysts are watching closely to see how the integration of crypto trading into traditional banking infrastructure will influence broader market dynamics in Europe.