The second largest bank in Germany, DZ Bank, is preparing to become a provider of custody services for crypto assets. The offering will be facilitated by a partnership with Metaco, a Swiss company that specializes in helping financial institutions operate in the digital asset space.
DZ Bank to Use Metaco’s Harmonize Platform to Launch Crypto Custody Services
DZ Bank, part of Volksbanken Raiffeisenbanken, one of the largest banking groups in Germany, will use a platform built by Metaco to offer services to institutional clients in the field of digital currencies and cryptocurrencies, the fintech announced.
Regulated by the Federal Financial Supervisory Authority (Bafin), DZ Bank is an established custodian and the second largest bank in Germany by asset size. At the end of 2022, it had assets in custody worth 297 billion euros (almost $315 billion).
Metaco, founded in Switzerland in 2015, focuses on enabling financial and non-financial institutions to carry out crypto operations. Its infrastructure allows these players to store and trade cryptocurrencies, tokenize other assets, provide staking services, and manage smart contracts.
Under the cooperation, DZ Bank intends to use Metaco’s core product, an orchestration platform for digital assets called Harmonize, to integrate its new offering into its current asset management services. “Metaco’s digital asset technology infrastructure is purposely designed to help financial institutions capitalize on the digital asset economy,” said Craig Perrin, director of sales for Metaco.
The German bank, which places an emphasis on regulatory compliance and security, selected it through an extensive proof-of-concept and due diligence process, the press release notes. Nils Christopeit, Lead Designer of Digital Custody Solutions at DZ BANK, elaborated:
In terms of our security, scalability and future requirements of our digital asset custody initiative for institutional clients, starting with crypto values according to the German eWpG, Metaco Harmonize has proven to be a powerful solution.
Christopeit was referring to Electronic Securities Act (Gesetz zur Einführung elektronischer Wertpapiere, abbreviated eWpG in German), which was adopted in 2021 to update the country’s securities legislation and the relevant supervisory framework. The law, which entered into force on June 10 of that year, is a key element of the blockchain strategy approved by the federal government in Berlin.
Do you think that other large German banks will seize the opportunity to provide services related to digital assets? Tell us in the comment section below.
image credits: Shutterstock, Pixabay, WikiCommons, 360b / Shutterstock.com
Disclaimer: This article is for informational purposes only. It is not a direct offer or a solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
