South Africa’s Discovery Bank to support crypto transactions with Luno integration
Users can track crypto and fiat balances on one platform and seamlessly move funds between their Luno wallets and fiat accounts.
South African digital bank Discovery Bank has partnered with cryptocurrency exchange Luno to bring crypto trading directly into its mobile banking app.
The integration will allow Discovery Bank customers to buy and sell digital assets using Luno’s infrastructure without leaving their banking platform.
The details
According to reports, the feature is set to roll out next month and will allow users to track and switch their fiat and crypto transactions in one place.
- In addition, users can move funds from their bank account to their Luno wallets and back at reduced fees and earn points for the balance in their Luno wallets.
Regulation driving innovation
Discovery Bank’s CEO Hylton Kallner said the move was made possible by crypto becoming mainstream in South Africa through clear regulations.
- He added that the growing demand for crypto assets among the bank’s customers meant that he had seen crypto adoption grow not just among the bank’s customers but also in South Africa at large.
- The partnership rides on Luno’s licensing as a crypto asset service provider (CASP) in South Africa, ensuring compliance.
Key quotes
- Kallner said:
“The financial world is evolving fast, and crypto assets have matured to become an accessible, mainstream asset class. Our clients—and South Africans more generally—are already engaged in this market, with 1 in 10 people holding crypto assets.”
- Luno’s CEO James Lanigan also commented:
“This partnership is a clear signal that crypto has moved from a niche to a mainstream investment choice for those looking to diversify their investment portfolio with digital assets.”
Zoom out
Traditional institutions integrating crypto or looking to launch stablecoin products are becoming more common in South Africa since digital asset regulations went live in the country.
- In 2022, the country classified crypto assets as financial products and amended the Financial Intelligence Act to include CASPs as accountable entities, officially opening the crypto regulatory regime in the country.
- The country’s financial watchdog, the Financial Sector Conduct Authority (FSCA), soon asked crypto firms in the country to apply for licenses, and has since issued such to more than 240 companies.
- In a move not too dissimilar to Discovery Bank’s partnership with Luno, Absa announced that it was partnering with global blockchain company Ripple to provide secure storage for its institutional clients’ digital asset holdings.
