Regulation
Bolivian bank launches custody service for Tether stablecoin
- Banco Bisa, the fourth-largest bank in Bolivia, has launched a USDT custody service.
- Cutstomers can buy, hold and send USDT from their bank accounts.
Banco Bisa, Bolivia’s fourth-largest bank, has introduced a stablecoin service aimed at bolstering security for holders as well as promoting their use in cross-border transfers.
The custody service will allow Banco Bisa’s customers to buy and sell Tether’s stablecoin USDT via their bank accounts. Bisa sees this as a scenario likely to significantly increase USDT adoption and use in the Latin American country.
Banco Bisa’s move
Per a local report, the initiative has received backing from the country’s financial watchdogs, with key benefits seen as the capacity to promote crypto within existing regulatory frameworks. More importantly, the program means users can interact with crypto at greatly reduced risks linked to the nascent crypto market.
According to Franco Urquidi, the vice president of business at Banco Bisa, the bank’s customers will have to complete a verification process. This is on the issues of know your customer and anti-money laundering, the latter among accusations Tether has vehemently denied.
Bisa’s move comes a few months after Bolivia lifted its ban on Bitcoin that lasted a decade – from 2014. The government’s crypto shift came in June 2024, with the country’s central bank noting this step as crucial to boosting the economy. The flip also means Bolivia joined many other Latin America countries in opening up the crypto space.
In a recent report, the Bolivia central bank said virtual asset trading spiked in the months after the ban was lifted. The market witnessed a 100% surge in trading, with an average $15.6 million in monthly volume between July and September.
Tether has seen steady traction in the Latin America region, with key programs and integrations including the $100 million investment in Agriculture company Adecoagro.