Dz Bank Offers Crypto Custody Services To Customers

DZ Bank AG, Germany's third-largest bank in terms of assets, has launched its own digital asset custody platform built on blockchain technology. The platform will cater to institutional clients and offer crypto securities, such as Siemens' crypto bonds, which DZ Bank joined six months ago.

DZ Bank's Head of Securities Services and Digital Custody, Holger Meffert, explained the bank's interest in distributed ledger technology. Meffert noted that they anticipate a significant portion of capital market transactions to be processed through infrastructure based on distributed ledger technology over the next 10 years. They see this technology as a complementary solution to existing capital market processes.

Additionally, the bank hopes to offer institutional investors and private clients the opportunity to purchase "Bitcoin-like" cryptocurrencies in the future. To achieve this, DZ Bank applied for a crypto custody license from the Federal Financial Supervisory Authority in June 2023.

DZ Bank is not the only German bank showing interest in crypto. Earlier, in March 2023, Deutsche WertpapierServiceBank (Dwpbank) launched the wpNex crypto trading platform, facilitating access to the digital asset sector for many German banks. Moreover, DWS, an asset management group in which Deutsche Bank holds the majority stake, announced its development of crypto currency products for trading on the European market. Other traditional banks like Commerzbank and DekaBank also have plans to obtain crypto custody licenses from the Federal Financial Supervisory Authority.