DZ Bank AG Unveils Blockchain-Based Digital Assets Platform Amid Rising Crypto Trend
Summary:
DZ Bank AG, Germany's third-largest bank, has announced the launch of a blockchain-based digital assets custody platform designed for institutional clients. The bank reveals plans to eventually allow customers to buy cryptocurrencies and has applied for a crypto custody license. This move aligns with a wider shift in Germany's banking sector toward embracing cryptocurrencies, despite strict regulations. Other banks, such as Commerzbank and DekaBank, also seek crypto custody licenses, reflexing the growing trend of digital assets in financial institutions.
DZ Bank AG, recognized as Germany's third most significant bank in terms of assets, just unveiled its distinct digital assets custody platform entrenched in blockchain. As declared on November 2, the setup primarily caters to institutional clients, facilitating them with crypto securities like Siemens' crypto bond which DZ Bank joined about half a year beforehand. Holger Meffert, who oversees Securities Services & Digital Custody at the bank, showed their keenness in the distributed ledger technology (DLT), projecting that a sizable segment of capital market operations would be facilitated via DLT-based infrastructures in the next decade. DZ Bank also anticipates permitting institutional investors and private clients to purchase cryptocurrencies such as Bitcoin in due time. For this purpose, DZ appealed for a crypto custody license from the Federal Financial Supervisory Authority (BaFin) in June 2023. Cointelegraph recently shed light on the migration of German banks towards crypto, disregarding the country's stringent industry regulations. Numerous institutions are uncovering ways for customers to interact with cryptocurrencies. Deutsche WertpapierServiceBank (Dwpbank) made notable progress in March 2023, introducing its wpNex crypto trading platform that extends access to the digital asset sector to 1,200 banking institutions and savings banks within Germany. Asset management conglomerate DWS, predominantly owned by Deutsche Bank, unveiled its plans on working with exchange-traded crypto products in Europe's market and creating other digital alternatives that grant investors access to blockchain applications and digital assets. Other mainstream banking entities, including Commerzbank and DekaBank, are also in the process of obtaining crypto custody licenses from Germany's financial overseer, the Federal Financial Supervisory Authority (BaFin).
Published At
11/6/2023 8:26:22 AM
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