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Large European bank to store crypto

Large European bank to store crypto

DZ Bank, the bank ranked 22nd among the largest banks in Europe and the third largest in Germany, has announced the launch of its own platform for storing and safeguarding cryptocurrencies. This is a significant development indicating that major financial institutions are increasingly open to the use of blockchain technology. DZ Bank's initiative demonstrates that traditional banks are showing more interest in the opportunities offered by the world of cryptocurrency.

Blockchain-based platform

DZ Bank's platform operates on blockchain technology and targets large corporate clients. The platform offers products that include so-called crypto securities. As a result, these large corporate clients can choose to issue "crypto bonds."

DZ Bank plans to also offer institutional investors and retail customers the opportunity to directly purchase cryptocurrencies, such as bitcoin (BTC), from them in the future. To achieve this, DZ Bank applied for a cryptocurrency custody license from BaFin, the German financial regulator, in June 2023.

Growing crypto adoption in Germany

It is increasingly common for German institutions to seek ways to provide their customers with access to cryptocurrencies. In March 2023, another German bank launched the wpNex cryptocurrency platform, allowing up to 1,200 banks and savings banks in Germany to participate in the crypto industry. Additionally, DWS, an asset management group largely owned by Deutsche Bank, announced that they are working on exchange-traded products (ETPs) of cryptocurrencies from the European market and developing other digital solutions to provide investors with access to blockchain applications and digital assets.

The fact that DZ Bank is launching its own crypto custody platform is a notable example of traditional banks exploring the possibilities of cryptocurrency. This is good news for crypto adoption in Europe and highlights the changes taking place in the world of financial services.