Compliance with the Travel Rule is critical for South African banks entering the crypto market. (Image source: 123RF)
After years of caution, South African banks are increasingly positioning themselves to enter the crypto-currency market, as regulatory clarity improves and institutional risk concerns ease.
The shift follows a series of policy developments, including the classification of crypto assets as financial products and the rollout of the Financial Sector Conduct Authority’s crypto asset service provider licensing regime, which has created a more structured and supervised ecosystem.
This certainty, combined with anti-money-laundering measures such as the Travel Rule and growing consumer demand, is reducing the reputational and compliance risks that previously made banks hesitant to engage with digital assets.
The Travel Rule is an international regulation designed to prevent money-laundering and terrorist financing by requiring financial institutions and licensed crypto service providers to share key information about the sender and recipient of transactions exceeding a set threshold (usually $1 000).
For crypto, this means exchanges, wallets and banks must attach verified customer details – such as names, account identifiers and transaction amounts – to qualifying transfers, ensuring transactions are traceable across borders.
Compliance with the Travel Rule is critical for South African banks entering the crypto market, as it reduces regulatory risk and allows them to safely offer digital-asset services to clients.
ITWeb asked South Africa’s leading banks about their plans for crypto-currencies and blockchain technologies in 2026, at a time when the sector is moving from the margins toward mainstream financial services.
Some institutions have already begun laying the groundwork for participation, including partnerships to provide regulated custody and tokenisation services, signalling a shift from passive observation to active exploration of digital-asset opportunities.
For example, Discovery Bank has shifted from a previously cautious approach to crypto-currencies to direct participation, positioning itself among the first banks in South Africa to embed crypto services within its banking platform.
In late 2025, the digital bank announced a partnership with crypto exchange Luno, enabling clients to buy, sell and store digital assets inside the banking app, with access to multiple crypto-currencies and real-time portfolio tracking.
Discovery Bank said the move reflects the increasing maturity of crypto as an asset class and growing customer demand for regulated, secure access through established financial institutions.
The offering also incorporates rewards linked to crypto balances and enhanced AI-driven fraud monitoring, aligning with the bank’s broader digital-first strategy.
Robert Benvenuti, chief information officer (CIO) for data and applied AI at Absa, tells ITWeb via e-mail: “In 2026, we will launch our digital asset custody solution to our business and corporate clients in South Africa, as well as continuing the work we have been doing on stablecoins and tokenisation.
“We expect to run some proof of concepts with clients during 2026 on both stablecoins and tokenisation as we look to scale the use of blockchain technology to provide products to clients.”
As Absa plans its stablecoin move, earlier this year, a consortium of South African financial and fintech firms introduced ZAR Universal (ZARU), an institutional-grade stable coin pegged to the South African Rand.
ZARU aims to modernise payments and financial infrastructure, allowing retail and institutional users to transact at internet speed, while strengthening the local financial system. The stablecoin is a collaboration between Luno, Sanlam Specialised Asset Management, EasyEquities and Lesaka. The consortium says the move combines trusted financial infrastructure with blockchain innovation.
Jörg Fischer, group CIO of Standard Bank, notes the big-four bank has engaged in the blockchain ecosystem through research and sector-wide studies rather than direct crypto-currency products.
“The Standard Bank and Crypto Valley Venture Capital African Blockchain Report highlights South Africa as one of the largest blockchain markets in Africa, with significant venture funding and sector growth.
“The bank remains keen in understanding blockchain’s potential for transaction efficiency and market infrastructure, monitoring developments in blockchain-based financial services, and supporting Africa’s technology ecosystem through research and collaboration,” says Fischer.
Johan Maree, CEO of FNB Nav, tells ITWeb that the increased regulatory certainty within the crypto space both locally and globally is something the bank welcomes.
“We are continually looking at broadening our investment offerings in line with our business strategy, as well as to respond to customer needs. We will consider entering the crypto market if we believe we can provide a simple, differentiated, easy to use and safe offering for our clients. Blockchain is a potentially powerful tool that we are exploring via several use cases.”
