DZ Bank, ranked as Germany’s third-largest bank by assets, has announced the introduction of its blockchain-based digital asset custody service. In a press release dated November 2, the bank detailed its plans to cater to institutional clients by offering them digital securities, like the cryptocurrency bond from Siemens that DZ Bank had previously invested in six months prior.
Holger Meffert, who leads the securities services and digital custody section at DZ Bank, voiced the institution’s commitment to blockchain technology, also known as distributed ledger technology (DLT):
“We anticipate that DLT will underpin a significant share of the capital market transactions within the next decade. In the interim, we expect DLT to act as an auxiliary technology that complements the established frameworks currently facilitating capital market operations.”
Looking ahead, DZ Bank aims to extend its services to both institutional and private customers for purchasing cryptocurrencies, including but not limited to Bitcoin. In pursuit of this goal, the bank applied for a crypto custody license from BaFin, the German Federal Financial Supervisory Authority, in June 2023.
Cointelegraph’s recent coverage highlights a growing trend of German banks embracing cryptocurrency services, despite the nation’s stringent regulatory landscape for the industry. An increasing number of financial institutions are exploring avenues to provide their clients with access to digital currencies.
In another advancement within the German banking sector, Deutsche WertpapierServiceBank launched its wpNex cryptocurrency trading platform in March 2023. This platform opens up the digital asset sector to approximately 1,200 banks and savings banks across Germany. Furthermore, DWS Group, predominantly owned by Deutsche Bank, disclosed its initiatives to create exchange-traded products based on cryptocurrencies for the European market and to develop new digital offerings that grant investors entry into blockchain technologies and digital assets.
Several other conventional banking institutions in Germany, such as Commerzbank and DekaBank, are also in the process of obtaining crypto custody licenses from BaFin, the country’s financial regulatory body.
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