Intesa Sanpaolo, Italy’s largest bank by total assets, has made its first direct purchase of Bitcoin, acquiring €1 million ($1.03 million) worth of the cryptocurrency on January 13, 2025, according to an internal memo reported by Reuters.

This move marks a significant moment for the Italian banking sector, as it’s the first time a bank in the country has directly acquired cryptocurrency.

The memo reportedly stated: “As of today, Intesa Sanpaolo owns 11 Bitcoin,” confirming the trade. Local media, including La Stampa and Criptovaluta.it, corroborated the news.

CEO Frames It as a Test

Speaking at an event in Milan, Carlo Messina, Intesa’s CEO, referred to the Bitcoin purchase as “an experiment” and emphasized its small scale relative to the bank’s $100 billion securities portfolio.

“This shows there can be some attention to digital channels, but with very limited investment amounts,” Messina explained. He also noted that the purchase positions the bank to cater to sophisticated clients who may request such investments in the future. Messina clarified that he has not personally invested in Bitcoin.

Establishing a Proprietary Crypto Desk

The Bitcoin purchase follows the establishment of Intesa Sanpaolo’s proprietary crypto trading desk in 2023. Initially, the desk focused on trading crypto derivatives such as options, futures, and exchange-traded funds (ETFs). By November 2024, the bank secured internal approvals and implemented technical systems to facilitate spot cryptocurrency trading using its own funds.

The move aligns with broader trends in traditional finance, where institutions are cautiously exploring digital assets. Intesa’s acquisition of Bitcoin suggests a willingness to test blockchain technologies while maintaining a conservative approach.

Leaked Memo and Market Impact

The news first surfaced on the online forum 4Chan, where an internal email from Niccolo Bardoscia, the bank’s head of digital assets trading and investments, was leaked. Local media later confirmed the reports, followed by Reuters.

Intesa Sanpaolo’s step into the crypto space may serve as a model for other European banks exploring digital assets, but it also underscores the measured pace at which traditional financial institutions are entering this market.