Germany’s third-largest bank, DZ Bank, is preparing to launch an innovative platform that will handle digital financial assets via blockchain technology.
This new platform is set to provide a secure storage service for crypto securities. Among these assets, you’ll find Siemens’ crypto bond, which attracted interest from Union Investment and DZ Bank six months ago.
DZ Bank’s strategic move involves seeking a crypto custody license from the Federal Financial Supervisory Authority (BaFin). This step will enable institutional customers to explore cryptocurrencies, including the popular Bitcoin.
Leading the Way
DZ Bank, which is Germany’s third-largest bank, has become one of the first credit institutions to launch a blockchain-based platform for the processing and custody of digital financial instruments. The move will enable the bank’s institutional customers to take advantage of the benefits offered by distributed ledger technology (DLT) for capital market processes.
The German cooperative’s new platform will initially offer custody for crypto securities, including a crypto bond from Siemens. DZ Bank is also in the process of applying for a crypto custody license from the Federal Financial Supervisory Authority, which would enable it to facilitate crypto investments for institutional and private customers.
Also Read: Coinbase Counts on Germany as a Regional Talent Hub for Crypto Expansion!
Expert Insights
Dr. Holger Meffert, Head of Securities Services and Digital Custody at DZ Bank shared his perspectives on this venture.
“We assume that within the next ten years a significant proportion of capital market business will be processed via distributed ledger technology (DLT)-based infrastructures. In the medium term, we see DLT as a complementary technology to the established infrastructures in the existing capital market processes,”
Blockchain Innovation for the Win!
DZ Bank has been embracing blockchain technology for years and is now building a digital custody platform to offer institutional customers self-custody of crypto securities, including a bond from Siemens. As part of its expansion into the crypto space, the bank applied for a crypto custody license from BaFin in June while simultaneously working on a solution for private customers to invest in cryptocurrencies.
Read More: Cryptocurrency Regulations in Germany – Crypto Capital of Europe
Adding to its impressive list of initiatives, DZ Bank is actively participating in the European Central Bank’s (ECB) exploration phase, where they are testing the settlement of large-volume capital market transactions using central bank currency.
Do you think more banks should follow DZ Bank’s lead and embrace blockchain technology?
Source: https://coinpedia.org/news/dz-bank-launches-a-blockchain-based-digital-custody-platform-for-institutional-customers/