First National Bank launches cryptocurrency trading for South African customers

First National Bank (FNB) has launched a retail cryptocurrency trading service for its 9 million South African clients, partnering with local exchange VALR. The service allows users to trade Bitcoin, Ethereum, XRP, Solana, and USDT directly from their bank accounts starting at R10. To comply with strict local exchange-control regulations and enhance security, FNB restricts users from transferring assets outside its ecosystem, keeping all transactions ringfenced.

Features of FNB's crypto service

• ▪First National Bank allows customers to fund cryptocurrency purchases directly from their bank accounts with a minimum trade requirement of R10.
• ▪First National Bank announced on October 6, 2026, the launch of a "Crypto Investing" service allowing its retail clients to trade digital assets directly on its existing share-trading platform.
• ▪First National Bank's cryptocurrency trading service supports five digital assets: Bitcoin, Ethereum, XRP, Solana, and Tether's USDT stablecoin.
• ▪First National Bank integrated its cryptocurrency trading feature into four existing investment products: Share Saver, Share Builder, Share Investor, and Share Zero.

Partnership with VALR

• ▪VALR is listed by the Financial Sector Conduct Authority as an authorized crypto asset service provider under Financial Services Provider number 53308.
• ▪First National Bank partnered with local cryptocurrency exchange VALR to power the capabilities behind the bank's new digital asset investment service.

Bank regulatory and risk concerns

• ▪First National Bank ringfenced cryptocurrency within its ecosystem, preventing external transfers to ensure compliance with South African exchange-control regulations and to reduce the risk of fraud or scams.
• ▪Many South African lenders have avoided providing banking services to cryptocurrency platforms, citing risks and a lack of clear regulation for digital instruments.

Crypto initiatives by competitor banks

• ▪Absa launched institutional digital asset custody in September 2026 using Ripple's technology to hold private keys for asset managers and corporate clients.
• ▪Discovery Bank partnered with cryptocurrency exchange Luno in November 2025 to allow its customers to connect their bank and exchange accounts.

South African cryptocurrency adoption

• ▪An estimated 6 million South Africans held cryptocurrency assets as of late 2025, with over R25 billion in assets reported under custody at major domestic platforms.
• ▪The South African Reserve Bank reported that on-chain USDT activity involving VALR, Luno, and AltCoinTrader reached nearly R27 billion during the year through April 30.

South African regulatory developments

• ▪Local South African cryptocurrency firms paused at least R2.2 billion in planned transactions while awaiting regulatory clarity on proposed exchange-control changes.
• ▪The South African Reserve Bank's June Financial Stability Review reported that the number of licensed crypto asset service providers in South Africa reached 310 by March 2026.
• ▪The South African Reserve Bank and National Treasury published a draft Crypto Assets Manual in August 2026 to govern cross-border cryptocurrency transactions.

Debatable claims

• ▪Lowering the financial barrier to cryptocurrency trading harms low-income investors
• ▪South Africa's exchange controls on cryptocurrency do more harm than good
• ▪FNB's restriction on external cryptocurrency transfers is justified
• ▪Traditional retail banks should offer cryptocurrency trading to their customers