European Banks Expand Cryptocurrency Services as New Stablecoin Protocol Launches

Belgian Bank Opens Crypto Trading to Retail Clients

KBC Group, Belgium's second-largest bank, is preparing to become the first Belgian financial institution to provide cryptocurrency trading services to retail customers ^[1]. Beginning the week of February 16, private investors will gain access to Bitcoin trading through Bolero, the bank's online investment platform ^[1].

The service will launch under the European Union's Markets in Crypto-Assets Regulation (MiCAR), with KBC having submitted a complete Crypto Asset Service Provider (CASP) notification to supervisory authorities ^[1]. The bank will initially limit offerings to Bitcoin and Ether, operating under an execution-only model where customers make independent investment decisions without receiving personalized advice ^[1].

"By offering the opportunity to purchase and sell crypto within a regulated framework, we are making innovation concrete and accessible," said Erik Luts, chief innovation officer at KBC Group ^[1]. "At the same time, we are demonstrating that KBC remains ready to assume its role as an innovator in a market where new players are rapidly evolving."

Strict Framework and Customer Protections

KBC has implemented several safeguards for its cryptocurrency offering. Before accessing trading capabilities, customers must complete a knowledge and experience assessment designed to evaluate their understanding of risks, including price volatility and potential total loss ^[1].

The bank has adopted a "closed-loop" model intended to minimize fraud and money-laundering concerns ^[1]. Under this structure, customers can only buy and sell cryptocurrency within the Bolero platform, without the ability to transfer assets to or from external wallets or exchanges ^[1]. KBC will also handle custody services, eliminating the need for clients to manage private keys independently ^[1].

The bank cited demographic trends as a key driver for the initiative, noting that approximately 45% of Belgians in their thirties already invest in cryptocurrencies ^[1]. Bolero's customer base reflects this trend, with roughly 60% of users under age 40, and "Bitcoin" ranking among the platform's most frequently searched terms ^[1].

Céline Pfister, CEO of Bolero, stated the platform aims to introduce crypto "in an accessible way" while ensuring investors receive proper education, with materials available through the Bolero Academy at launch ^[1].

German Bank Follows Similar Path

KBC's move follows a comparable development in Germany, where DZ Bank, the country's second-largest lender, obtained authorization under MiCAR last year ^[1]. The bank's BaFin-approved "meinKrypto" platform enables customers of Volksbanken and Raiffeisenbanken to trade Bitcoin and other cryptocurrencies directly through their existing banking applications, subject to individual bank notifications ^[1].

Startup Raises Funds for Institutional Credit-Backed Stablecoin

In a separate development, Saturn announced raising $800,000 from YZi Labs and Sora Ventures to develop USDat, a yield-bearing stablecoin protocol ^[2]. The protocol aims to leverage what it describes as "digital credit" from Strategy and institutional sources.

"Our goal is to bring transparent yield to DeFi at a scale of billions of dollars," said Kevin Li, Co-founder of Saturn ^[2]. "We are building the first application on Michael Saylor's digital credit – a whole new platform layer, where banks, insurance, investing and money will be all reshaped."

Li indicated that yield generation currently combines Strategy's STRC and U.S. Treasury bills ^[2]. Jason Fang, Founder of Sora Ventures, commented that "few projects connect institutional credit with DeFi in a meaningful way," adding that Saturn "is pioneering the first on-chain use of Strategy's credit products" ^[2].

The Saturn team brings experience from Artemis, a blockchain data company specializing in stablecoin and onchain analytics, and M31 Capital, a DeFi-focused venture and liquid fund ^[2]. All founders are University of Pennsylvania alumni ^[2].