DZ Bank announced it had leveraged digital ledger technology to create a digital assets custody platform for its institutional clients.
DZ Bank, one of the biggest banks in Germany, has used blockchain technology for one of its new products. It has launched a new digital assets custody platform, especially focused on its institutional investors. The bank published a press release announcing the event. The bank had procured a crypto custody license months back, which has enabled the latest platform.
BaFin, the German regulator which had issued the license, had recently expressed its views on the crypto space. One of its senior officials had lent support for global crypto regulation. Meanwhile, the crypto custody platform of DZ Bank would be useful for crypto adoption, helping investors buy crypto securities. DZ Bank subscribed to Siemens’s crypto bond months ago, which is one of the instances in which the platform could be helpful.
“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 DZ Bank’s Head of security services and crypto custody, Holger Meffert.
The bank claimed it had been working on blockchain technology for a long time. It began working on the current custody platform in 2022. On the other hand, DZ bank also said it could participate in the exploration phase of the European Central Bank.
German banks exploring the crypto space are not new, though. Dwpbank was also in the fray, creating a trading platform for Bitcoin. Similarly, DZ Bank also collaborated with a Swiss partner back in early 2023 to manage digital currencies for its institutional clients.
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