Company: BCDRF
Filing Date: 2025-03-03
Form Type: 6-K
Source: 0000891478-25-000057
Chunk: 215

Company: Banco Santander, S.A.
Filing Date: 2025-03-03
Form: 6-K
Chunk 215
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 taker's remunerations |     | Appendices |

Also, a robust product approval governance for digital assets activities including the implementation of advanced transaction monitoring tools (in the case of crypto specifically) with dedicated surveillance teams has been put in place. In order to enable an effective implementation of this risk framework, specifically with regards to working with vendors in the space, several policies and procedures for the onboarding of Crypto Asset Service Providers (CASPs) have been drafted and approved. A dedicated Compliance Digital Assets team is tasked with the oversight of all digital asset activity.

Generally, Santander does not think that digital assets present operational risk issues that are significantly different than normal business activities might present. For example, the safekeeping of cryptographic keys is not much different than our business-as-usual practices for the safekeeping of digital certificates for other purposes. I.e. Hardware Security Modules and the various access policies associated with them have been well understood for many years. Business continuity plans apply in the same way that they might today. Code audits are used where necessary.

#### 11.4.2. Categorized Cryptoasset Activities
To reflect the diversity of our cryptoasset activities, Santander has categorized its engagements as follows:

11.4.2.1. Digital Financial Instruments (including digital Securities)

Santander is actively engaged with other banks, CSDs (Central Securities Depositaries) and custodians to explore the benefits tokenizing traditional financial instruments, utilizing blockchain technology to enhance transparency, improve liquidity and reduce operational risk. Today, in addition to primary issuances of digital bonds, our main fields of work involve the early stages digital collateral mobility by bringing programmability and always-on 24/7 capabilities to traditional capital markets activity (repo, etc.).

#### 11.4.2.2. Digital Cash
Santander is actively exploring the full spectrum of innovation in the digital cash space. This includes central bank digital currencies (CBDCs), reserves backed digital currencies

(e.g. Fnality International), stablecoins and tokenized bank deposits. Some specific examples are below:

1) Fnality International: Santander is a founder and minority shareholding of Fnality International, a wholesale, multicurrency, digital Payment System. The first leg of the Fnality Payments System (FnUK) went live in December 2023 under supervision of the Bank of England, with Santander and other banks using the system to make real payments. The dollar leg of the Fnality Payments System is expected to launch in 2025.

2) Also