BPCE’s Crypto Subsidiary Hexarq Secures Regulatory Approval in France
France is experiencing a financial evolution as BPCE, a leading banking group, enters the crypto space. BPCE's subsidiary, Hexarq, has secured approval from the Autorité des Marchés Financiers (AMF) to commence its crypto operations.
This development indicates growing regulatory acceptance of cryptocurrency and positions BPCE as a potential key player in the industry by 2025.
Hexarq: A New Player with Big Ambitions
Founded in January 2021, Hexarq is a digital asset platform focused on crypto assets and tokenized Real-World Assets (RWA). With its recent authorization as a Crypto Asset Service Provider (CASP), Hexarq will offer custody solutions, euro-denominated trading, and streamlined transactions for digital assets.
The AMF’s approval not only legitimizes Hexarq but also designates it as one of the few authorized crypto firms in France. This approval reflects BPCE’s strategy to utilize Hexarq within its Banque Populaire and Caisse d’Épargne networks, which together serve approximately 35 million customers.
Starting in 2025, Hexarq plans to integrate its services into BPCE’s banking platforms to make crypto investments accessible to mainstream customers, aligning with traditional financial institutions' increasing interest in blockchain technologies.
BPCE reported Assets Under Management (AUM) of around €1.3 trillion ($1.3 trillion) in late September, emphasizing the financial weight behind its entry into the crypto sector.
BPCE’s involvement could accelerate crypto adoption in France and beyond.
France’s Evolving Crypto Landscape
Hexarq’s approval marks a shift in France’s approach to digital assets. The AMF began accepting CASP applications in August 2024 in preparation for the European Union’s Markets in Crypto-Assets (MiCA) regulations set to be enforced by December 30, 2024.
Only three other companies have received similar authorization, placing Hexarq and BPCE at the forefront of regulated crypto services in France.
BPCE's decision to enter the digital asset space may influence other major European financial institutions. While specific timelines or product details remain undisclosed, integrating Hexarq into its banking networks signals a commitment to innovation and meeting the demand for secure, regulated digital asset services.
As Hexarq prepares to offer crypto services, Bybit will discontinue its withdrawal and custody services in France starting January 8, 2025, citing the stringent regulatory environment as the reason.