Cryptoassets and private banking: controlled boldness.

As JPMorgan leads the way by accepting Bitcoin and Ethereum as loan collateral, Francesco Grosoli, Managing Director of CMB Monaco, shares his vision of innovation that should never come at the expense of rigour. Between curiosity about Web3 and compliance requirements, he advocates for gradual integration, guided by asset protection and a robust regulatory framework.

Do you think JPMorgan’s decision marks the beginning of Web3’s integration into traditional private finance?

JPMorgan’s decision illustrates a fundamental trend: the banking world is closely monitoring the evolution of Web3 and seeking to understand its financial applications. That said, this is not yet large-scale integration, but rather experimentation in very specific environments.

The challenge is to move forward without fear of innovation, while remaining true to our commitment to rigour and asset protection. It is a real balancing act: we must embrace technological transformations, whether Web3 or artificial intelligence, without ever compromising on security.

Our role is to evaluate these innovations with discernment, understand their added value for our clients, and integrate them when they truly create value, provided they have a defined regulatory framework. This is the philosophy that guides our digitalisation strategy, enabling us to combine modernity, efficiency and security in our customer relationships.

Could private banks such as CMB one day consider accepting crypto-assets as collateral, even if only for a very specific clientele?

For CMB Monaco, the priority remains the protection of assets, the traceability of transactions and the stability of valuations. Before integrating this type of asset into our practices – because yes, it is now an asset class in its own right – we want to ensure that the legal, fiscal and prudential framework is clearly defined and aligned with our compliance standards and the expectations of our clients.

Our approach is therefore deliberately gradual: CMB Monaco has often been a pioneer in major technological shifts, and we may well be so again in this case, but only once innovation and reliability are fully compatible.

Should this be seen as a move towards innovation or a defensive manoeuvre to prevent crypto-native players from gaining ground?

It is probably a bit of both. Major financial institutions are testing these uses so as not to fall behind technologically, while seeking to understand how to regulate these new assets responsibly.

At CMB Monaco, we share this desire for innovation, but with a controlled approach that is aligned with our primary mission: to protect our clients’ assets in a rapidly changing environment. Our digital strategy, illustrated in particular by the continuous modernisation of our tools, aims to offer our clients the best of technology without losing sight of compliance requirements.

How can a traditional bank assess and manage the risk of an asset as volatile as Bitcoin within a prudential framework?

This is precisely one of the main difficulties. Given its high volatility and the complexity of the risks associated with Bitcoin, a traditional bank must adopt a rigorous approach to the assessment and management of this crypto-asset. This involves analysing its volatility, market liquidity and specific operational risks. Prudential management must be based on a strict regulatory framework, exposure limits, continuous monitoring and stress testing to ensure the resilience of the bank and the security of its customers.

Does European regulation (MiCA in particular) now make this type of practice feasible for a bank operating in Monaco?

While the European MiCA framework is a significant step towards harmonised regulation of crypto-assets, it is not yet fully operational. In Monaco, banking institutions remain subject to a separate regulatory framework, which is often more demanding in terms of compliance. Monegasque institutions operate in an environment that is aligned with European standards, while complying with additional obligations imposed by local law and international agreements in force.

Do you think that transparency and compliance requirements (KYC, AML) are compatible with such openness to digital assets?

This is a major challenge. Transparency and compliance requirements are at the heart of the Monegasque private banking model. However, the crypto-asset ecosystem, even as it takes shape, still has areas of opacity. I would therefore say that, technically speaking, yes, transparency and compliance requirements can be compatible with these digital assets, provided that enhanced control mechanisms are put in place and a clear regulatory framework is established. CMB Monaco actively and systematically monitors developments in the regulatory framework applicable to digital assets. A dedicated team of experts has been set up internally to analyse, anticipate and ensure that the Bank’s practices comply with the legal and prudential requirements in force. Our approach is to understand these new models so that we are ready to fully integrate them when the standards of security, compliance and transparency reach the level we require for our clients.

Photo : Philippe Fitte