The existing infrastructure of DZ Bank makes it possible for the Bank to participate in the exploratory phase of the ECB’s project to test the settlement of large amounts of capital market transactions in central bank money.
Germany’s third largest bank is DZ Bank launched A blockchain-based platform for processing and safeguarding crypto assets. The platform will cater to institutional clients, providing them with crypto securities of crypto bonds from Siemens, which “DZ Bank subscribed for six months ago and which can now be transferred to self-custody.”
“We believe that within the next ten years a significant portion of capital markets turnover will be processed through distributed ledger technology (DLT)-based infrastructure. In the medium term, we see DLT as a complementary technology to the infrastructure established in existing capital markets processes.” They say Dr. Holger Meffert, Head of Securities Services and Digital Custody at DZ Bank.
DZ Bank began building the platform in 2022 and previously acted as processor and custodian in the first external transaction of crypto fund shares from Bankhaus Metzler. Since both custody and processing fall under the Electronic Securities Act (EWPG), the bank can take on this new role with its existing license.
In June, the bank had applied for a crypto custody license from the Federal Financial Supervisory Authority (BaFin) to enable its institutional clients to invest in cryptocurrencies like Bitcoin in the future. It is also working on an offering that will enable private clients to invest directly in crypto. In addition, DZ Bank’s existing infrastructure makes it possible for the Bank to participate in the exploratory phase of a European Central Bank (ECB) project testing the settlement of large amounts of capital market transactions in Central Bank money.
Ripple Labs After an intensive proof-of-concept and due diligence process, subsidiary Metaco was selected to provide structural support. The partnership was first announced in February 2023 release From Metaco, its Harmonize™ platform was selected for its perfect alignment with the bank’s “requirements for security, scalability and optionality to rapidly adapt to any future changes.”
German banks have been making cryptocurrencies more accessible to their customers in recent months. In March, Deutsche Wertpapierservicebank (Dwpbank) launched its wpNex crypto trading platform, giving 1,200 banks and savings banks in Germany access to the digital asset industry. In April, asset management group DWS, which is majority owned by Deutsche Bank, announced Partnership with Galaxy Digital with the aim of “developing a comprehensive suite of exchange-traded products (ETPs) on certain digital assets in Europe.” Other banks, including Commerzbank and Dekabank, have applied for crypto custody licenses with BaFin.
Mercy Mutanya is a tech enthusiast, digital marketer, author and IT Business Management student. She enjoys reading, writing, doing crossword puzzles, and watching her favorite TV series.
More Read
Bitcoin Crypto Related Post
