According to Cointelegraph, DZ Bank AG, Germany's third-largest bank by asset size, has introduced a digital assets custody platform based on blockchain technology. The platform will cater to institutional clients, providing them with crypto securities such as Siemens' crypto bond, which the bank subscribed to six months ago. Holger Meffert, Head of Securities Services & Digital Custody at DZ Bank, stated that the bank believes a significant portion of capital market business will be processed via distributed ledger technology (DLT)-based infrastructures within the next decade. DZ Bank also plans to offer institutional investors and private customers the ability to purchase cryptocurrencies like Bitcoin in the future.
To achieve this, the bank applied for a crypto custody license from the Federal Financial Supervisory Authority (BaFin) in June 2023. Cointelegraph has recently highlighted the shift towards crypto among German banks, despite the country's strict regulatory environment. Institutions are increasingly finding ways to grant customers access to cryptocurrencies. In March 2023, Deutsche WertpapierServiceBank (Dwpbank) launched 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, announced plans to develop exchange-traded products of cryptocurrencies in the European market and other digital solutions that will provide investors with access to blockchain applications and digital assets. Traditional banks such as Commerzbank and DekaBank are also seeking crypto custody licenses from Germany's financial watchdog, the Federal Financial Supervisory Authority (BaFin).
