DZ Bank Launches Digital Financial Instruments Custody Platform
Germany’s third-largest bank, DZ Bank, has announced the launch of its own blockchain-based ‘digital financial instruments’ custody platform. This platform is specifically designed to cater to institutional customers. DZ Bank has a history with cryptocurrencies and has previously been involved in the custodial and processing services for crypto fund shares.
DZ Bank Predicts DLT as the Future Industry Standard
The head of securities services and digital custody at DZ Bank, Dr. Holger Meffert, believes that distributed ledger technology (DLT) will become the industry standard within the next decade. He states that a significant portion of capital market business will be conducted using DLT-based infrastructures. In addition, DZ Bank is actively participating in the exploration phase for the digital euro conducted by the European Central Bank.
Expansion of Services to Private Customers
DZ Bank is also working towards providing cryptocurrency custody and trading services to its private customers. It has hired more employees to support this initiative, including roles in compliance, IT, and operations. Furthermore, the bank aims to introduce a Bitcoin option for its customers before the end of the year.
Germany’s Effort to Become a Cryptocurrency Hub
The launch of Deutsche WertpapierService Bank AG’s wpNex platform allowed over 1,200 affiliated banks in Germany to offer Bitcoin trading and investing to their retail customers. This move was seen as a significant step towards establishing Germany as a major cryptocurrency hub.
Hot Take: German Banks Leading the Way in Crypto Custody
German banks are making notable progress in the cryptocurrency industry. DZ Bank’s launch of its own blockchain-based custody platform for digital financial instruments demonstrates the increasing interest and investment in cryptocurrencies by major financial institutions. Furthermore, the bank’s belief in the future adoption of distributed ledger technology (DLT) as the industry standard aligns with the growing recognition of blockchain’s potential. With plans to expand cryptocurrency services to private customers and the establishment of Germany as a cryptocurrency hub, German banks are positioning themselves at the forefront of this evolving market.
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