With the right user base and its alignment with existing regulations, DZ Bank will open access to millions of users to consider entering the crypto ecosystem with its offering.
DZ Bank, the second largest financial services provider in Germany, is ready to dive into the crypto asset management niche and has named Swiss custodian Metaco as its partner. As reported Per CoinTelegraph citing statements shared by the duo, Metaco’s custody platform Harmonize will be the primary team using DZ Bank.
Several financial institutions are already exploring avenues to enter the nascent crypto world due to growing customer demand. While different banks have their own unique strategies for entering the world of cryptocurrency, regulatory allowances from country to country make banks like DZ seem more competitive.
After taking so long to reveal its intentions, DZ Bank said it chose Metaco as its partner because of the company’s advances in security and scalability.
“With the offer that we can build by using this technology, we are confident of creating a fast-growing and long-lasting business cooperation as well as an attractive solution for our customers that can also meet the requirements of digital currencies and decentralized financial instruments. Nils said. Christopeit, an executive at DZ Bank.
Despite stiff competition from major banking firms, many industry leaders still see their presence as a crucial catalyst in driving the widespread adoption of digital assets. Today, there are investors who have stayed on the sidelines because the banks they trust do not offer crypto solutions.
With the right user base and its alignment with existing regulations, DZ Bank will open access to millions of users to consider entering the crypto ecosystem with its offering. Commenting on the partnership, Metaco Director of Sales Craig Perrin said that the company’s core business is optimized to help drive institutional adoption of digital currencies:
“We are pleased to announce this cooperation as it further establishes Metaco as a market leader in Germany, trusted by some of the country’s largest banks and stock exchanges.”
Management and regulation of crypto assets
With different jurisdictions maintaining different regulations, when it comes to crypto custody, the United States Securities and Exchange Commission (SEC) has published a rule change to guide industry participants in the United States.
Major institutional investors in the US, including Fidelity Investments, BlackRock, and even Goldman Sachs Group Inc (NYSE:GS), are gradually exploring avenues to offer crypto asset management and custody services for their clients. These offerings are designed to offer direct competition to industry heavyweights such as Coinbase Custody and Gemini Custody, among others.
Under the new rule change, the SEC wants custodial service providers to provide proof that escrow clients’ equity accounts are well segregated from those of other company activities. This rule change, if adopted, will help prevent related crises, such as Sam Bankman-Fried’s mismanagement of internal funds prior to the bankruptcy of his trading platform, FTX Derivatives Exchange.
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Benjamin Godfrey is a blockchain enthusiast and journalist who enjoys writing about the real-life applications of blockchain technology and innovations to drive mainstream acceptance and global integration of emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain-based sites and media. Benjamin Godfrey is a lover of sports and agriculture.
