- Banco Bisa, the fourth-largest bank in Bolivia, has launched a USDT custody service.
- Customers can buy, hold, and send USDT directly from their bank accounts.
Banco Bisa, Bolivia’s fourth-largest bank, has introduced a stablecoin custody service designed to enhance security for holders and encourage the use of stablecoins in cross-border transfers.
The custody offering allows Banco Bisa customers to purchase and sell the USDT stablecoin Tether through their bank accounts. The bank expects this to significantly boost USDT adoption and usage within the Latin American country.
Banco Bisa’s Initiative
According to a local report, the initiative received support from the country’s financial regulators, who view the program as a way to promote cryptocurrency use within existing regulatory frameworks.
Crucially, the custody service enables customers to engage with crypto while facing much lower exposure to the risks associated with the developing crypto market.
Franco Urquidi, Banco Bisa’s vice president of business, said customers will need to complete a verification process that addresses know-your-customer (KYC) and anti-money laundering (AML) requirements. These safeguards are intended to mitigate risks that have previously been associated with some stablecoin activity—allegations that Tether has strongly denied.
Banco Bisa’s move follows Bolivia’s decision earlier in 2024 to lift a decade-long ban on Bitcoin that had been in place since 2014. The government’s policy change in June 2024 was highlighted by the central bank as an important step to stimulate the national economy.
The policy reversal also places Bolivia among several Latin American countries opening up to crypto. In a recent update, Bolivia’s central bank noted that trading in virtual assets increased in the months after the ban was lifted, reporting a 100% rise in trading activity and an average monthly trading volume of $15.6 million between July and September.
Tether has seen steady traction across Latin America through various programs and integrations, including notable investments such as a $100 million stake in agricultural company Adecoagro.