DZ Financial institution, third-largest German financial institution, to begin crypto custody for institutional traders

DZ Financial institution, the third largest financial institution in Germany by asset measurement, has launched its personal digital belongings custody platform constructed on the blockchain. According to an announcement revealed on Nov. 2, the platform will work with institutional shoppers, providing them crypto securities, such because the crypto bond from Siemens, which DZ Financial institution subscribed to 6 months in the past.

Holger Meffert, head of securities providers and digital custody at DZ, expressed the financial institution’s curiosity in distributed ledger know-how (DLT):

“We assume that inside the subsequent ten years, a big proportion of capital market enterprise will likely be processed by way of distributed ledger know-how (DLT)-based infrastructures. Within the medium time period, we see DLT as a complementary know-how to the established infrastructures within the current capital market processes.”

The financial institution additionally hopes to supply institutional traders and personal clients the ability to purchase cryptocurrencies, “akin to Bitcoin,” sooner or later. To realize that, DZ utilized for a crypto custody license from the German Federal Monetary Supervisory Authority (BaFin) in June 2023.

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Cointelegraph has just lately reported on German banks’ shift toward crypto adoption regardless of the nation’s strict trade regulatory regime. An increasing number of establishments are discovering methods to permit clients entry to cryptocurrencies.

In March 2023, Deutsche WertpapierServiceBank took an important step with the launch of its wpNex crypto buying and selling platform, which provides 1,200 banks and financial savings banks in Germany entry to the digital asset trade. Asset administration group DWS, majority-owned by Deutsche Financial institution, additionally announced it was engaged on exchange-traded merchandise of cryptocurrencies within the European market and developing other digital solutions that may give traders entry to blockchain functions and digital belongings.

Different conventional banks, together with Commerzbank and DekaBank, additionally seek crypto custody licenses from Germany’s financial watchdog, BaFin.

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