Germany’s DZ Bank AG has unveiled a blockchain-based platform for digital assets processing and custody, including Siemens’ crypto bond.
DZ Bank, Germany’s second-biggest bank, has introduced a unique service aimed at institutional customers for protecting cryptocurrency holdings. The blockchain company Ripple’s Metaco Harmonize platform will be utilized to its full potential by this service.
This action represents a combination of blockchain technology and traditional banking in Germany. The alliance also represents a success for Ripple since traditional banking is increasingly integrating blockchain technology.
Since the SEC dismissed its lengthy litigation against the company last week, Ripple has been on a tear, and in the last two weeks, XRP has increased by more than 33%.
With Bitcoin being mentioned as a prime example, DZ Bank is actively growing its services to eventually allow individual and institutional clients to purchase digital currencies directly.
Midway through 2023, DZ Bank applied to BaFin, Germany’s financial watchdog, for a cryptocurrency custody license in order to obtain regulatory permission for this development.
This move is a part of a wider pattern among German banks, which are adjusting to the nation’s strict regulatory environment while seeing a rise in interest in virtual currencies.
The pace of work to incorporate cryptocurrency into traditional financial services is quickening. Due to the recognition of Germany as a vital hub for web3 talent by prominent exchanges such as Coinbase, the nation’s blockchain funding has surged by 3% this year.
With the launch of wpNex, a digital asset trading platform, earlier in the year, Deutsche WertpapierServiceBank made a huge step forward by giving more than a thousand German banks access to the cryptocurrency space.
Furthermore, DWS Group—of which Deutsche Bank owns a majority stake—has disclosed its plans to provide cryptocurrency-related exchange-traded products in Europe.