German DZ Bank to Launch Retail Crypto Trading Trial in 2024
DZ Bank, the second largest bank in Germany, is preparing to start a retail crypto trading trial this year. The Frankfurt-based bank aims to offer the service to its network of over 700 community banks. Souad Benkredda, a DZ Bank board member, revealed that the pilot phase for retail trading of cryptocurrencies with cooperative banks will begin this year.
The service will be available to private customers who can access cryptocurrencies independently without seeking financial advice. According to a study from Genoverband, about half of the banks are interested in offering cryptocurrency solutions to their customers, but each institution will make the decision independently.
DZ Bank’s Expansion into Crypto
Last year, DZ Bank launched a blockchain-based digital custody platform for institutional clients. The platform allows these clients to engage in cryptocurrency investments. In November, DZ Bank hinted at plans to include crypto purchases for both institutional investors and individual customers.
In June 2023, DZ Bank applied for a crypto custody license from the German financial regulator, BaFin. The head of digital custody at DZ Bank, Holger Meffert, expressed optimism about the future of blockchain-based infrastructures and predicted that a significant portion of capital market business would be processed through distributed ledger technology (DLT) within the next decade.
Hot Take: German DZ Bank Expands Crypto Services
German DZ Bank is set to launch a retail crypto trading trial this year, making it available to over 700 community banks. This move follows the bank’s unveiling of a blockchain-based digital custody platform last year and its application for a crypto custody license from BaFin in 2023. With the increasing interest in cryptocurrencies among customers and institutions, DZ Bank aims to meet this demand and provide access to crypto investments. This development highlights the growing acceptance and adoption of cryptocurrencies in the traditional banking sector, paving the way for further integration of digital assets into mainstream financial services.
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