German banks are embracing crypto.
DZ Bank AG, the third largest bank in Germany, recently launched its own digital asset custody platform designed for institutional clients. The bank announced to give access to crypto securities like the Siemens crypto bond. DZ Bank applied for a crypto custody license from German regulator BaFin earlier this year, with aspirations to also serve retail investors interested in cryptos like Bitcoin in the future.
DZ Bank's move comes as Deutsche Bank's DWS asset management arm reveals plans for crypto exchange-traded products in Europe, while Commerzbank and DekaBank also seek crypto custody licenses from BaFin.
Earlier this year, Deutsche WertpapierServiceBank launched the wpNex crypto trading platform, opening the door to the crypto economy for over 1400 German financial institutions.
“We assume that within the next ten years a significant proportion of capital market business will be processed via distributed ledger technology (DLT)-based infrastructures. In the medium term, we see DLT as a complementary technology to the established infrastructures in the existing capital market processes,” says Dr. Holger Meffert, Head of Securities Services & Digital Custody at DZ BANK.
Despite regulatory uncertainty, it seems the German banking sector is intent on embracing the crypto wave and pushing forward with offerings for both institutional and retail investors. The recent market downturn and FTX collapse don't appear to have dampened enthusiasm.
