Italian bank Intesa Sanpaolo has made its first cryptocurrency purchase, buying 1 million euros worth of bitcoin.
Italy's largest bank acquired 11 bitcoin, according to Reuters, citing an internal memo.
However, CEO Carlo Messina has played down the significance of the purchase, saying it was a "test" and that the bank "won't become a bitcoin player".
Messina says: "As a wealth management company that has the ambition to become like UBS, we have very sophisticated clients that may ask for this kind of investment and you can't serve them unless you have a presence".
Michele Mandelli, managing partner at crypto fintech CheckSig says “it was only a matter of time," before the Intesa Sanpaolo move.
"Intesa Sanpaolo's crypto proprietary trading desk, active for two years now, had been operating exclusively with traditional instruments, such as ETPs.
"This first direct investment in physical bitcoin ‘breaks a barrier,’ signalling a symbolic and operational shift, made possible by the MICA regulation, which provides a structured framework for banks to access the cryptocurrency market.”
Bitcoin has seen its value push towards $100,000 in recent months, boosted in large part by Donald Trump's US election win.
However, Messina cautioned non-professional investors against dabbling in crypto, saying "don't do it".