DZ Bank, Germany’s third largest bank by asset size, has launched its own blockchain-based digital asset custody platform. According According to an announcement published on November 2, the platform will work with institutional clients, offering them crypto securities, such as the Siemens crypto bond, which DZ Bank subscribed to six months ago.
Holger Meffert, head of digital custody and securities services at DZ, expressed the bank’s interest in distributed ledger technology (DLT):
“We assume that within the next ten years, a significant proportion of capital market business will be processed through infrastructures based on distributed ledger technology (DLT). In the medium term, we see DLT as a complementary technology to the infrastructures established in existing capital market processes.”
The bank also hopes to offer institutional investors and private clients the ability to purchase cryptocurrencies, “like bitcoin,” in the future. To achieve this, DZ applied for a cryptocurrency custody license from the German Federal Financial Supervisory Authority (BaFin) in June 2023.
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Cointelegraph recently reported on German banks’ shift toward cryptocurrency adoption despite the country’s strict industry regulatory regime. More and more institutions are finding ways to allow customers to access cryptocurrencies.
In March 2023, Deutsche WertpapierServiceBank took a major step with the launch of its wpNex crypto trading platform, giving 1,200 banks and savings banks in Germany access to the digital asset industry. Asset management group DWS, majority owned by Deutsche Bank, also Announced was working on exchange-traded cryptocurrency products in the European market and developing other digital solutions that will provide investors with access to blockchain applications and digital assets.
Other traditional banks, including Commerzbank and DekaBank, are also applying for cryptocurrency custody licenses from Germany’s financial watchdog BaFin.
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