DZ Bank Launches Crypto Custody Platform
Germany’s DZ Bank, one of the largest banks in the country, recently announced the debut of its digital custody platform. The bank has hired more than a dozen employees in IT, operations, and compliance to operate the new custody solution. With total assets of €367.50 billion ($392.35 billion) as of June and a workforce of 5,411 employees, DZ Bank is making significant moves in the crypto space.
The bank has been working with blockchain technology for several years and began developing a digital custody platform for institutional clients in 2022. DZ Bank is among the first credit institutions to offer such a service based on blockchain technology. Initially, the bank will only custody “crypto securities,” including a crypto bond from Siemens.
Head of Securities Services and Digital Custody at DZ Bank, Holger Meffert, expressed confidence in distributed ledger technology (DLT) as a complementary technology to established capital market processes. The bank plans to utilize a platform developed by Metaco to provide cryptocurrency services to institutional clients.
In June, DZ Bank applied for a crypto custody license from the Federal Financial Supervisory Authority (BaFin) to enable institutional customers to invest in cryptocurrencies like bitcoin. Additionally, the bank is working on an offer that allows private customers to invest directly in cryptocurrencies.
Hot Take: DZ Bank’s Foray Into Crypto Custody
DZ Bank’s launch of its digital custody platform marks a significant step into the world of cryptocurrency for one of Germany’s largest banks. The move not only caters to institutional clients but also paves the way for private customers to invest directly in cryptocurrencies. With the increasing adoption of blockchain technology, DZ Bank’s decision to embrace digital assets reflects a growing trend within the traditional financial sector.
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