DZ Bank, one of Germany’s largest banks, has launched a new blockchain-based digital assets platform. It will cater to both institutional clients and private customers.
DZ Bank, Germany’s third largest bank, has launched a new blockchain-based digital assets platform, the company confirmed in a November 2 announcement.
The service includes both the processing and custody of “digital financial instruments”. The service is currently focused on custody, but it hopes to enable institutional customers to invest in Bitcoin in the near future, as well as allowing private customers to invest directly in cryptocurrencies.
One of its first institutional clients includes a crypto bond from Siemens, which DZ BANK subscribed to six months ago.
DZ BANK is the third largest depository in Germany after BNP Paribas and State Street, and is the largest among German depository institutions, with a volume of over 300 billion euros. It’s one of the first in major credit institutions to offer a digital assets platform that’s based on blockchain.
“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,” said Dr. Holger Meffert, Head of Securities Services & Digital Custody at DZ BANK.
The bank has hired more than a dozen new employees in IT, compliance and operations to oversee the new service.
DZ’s entrance into crypto is just one of many over the past few months.
Last week, St.Galler Kantonalbank (SGKB), a major Swiss bank, launched a new digital asset custody and trading service for its clients, which includes Bitcoin and Ether trading.
Additionally, on October 30, a letter filed to the Stock Exchange of Thailand revealed that Kasikorn (KBANK), the second largest bank in Thailand, acquired a majority stake (97%) in the parent company of crypto exchange Satang.
The deal was valued at 3.7 billion Thai baht, approximately $102.8 million.
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