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- 1 DZ Bank launched its crypto custody platform for institutional clients in Germany.
- 2 The bank filed its application for the license of crypto custody services with BaFin in June 2023.
- 3 The bank aims to expand its platform services for individual investors, which might boost crypto adoption.
In the past few years, a significant shift towards blockchain technology adoption has been seen. Data states that over 100 traditional banks have already adopted the technology and several others are working on the adoption.
One of the largest centralized banking giants, DZ Bank AG, has entered the crypto custody category by launching its digital assets ecosystem which is backed by the popular blockchain technology.
The motive of the Bank to launch a crypto custody platform is fully backed by the surging demand for cryptocurrency in all parts of Germany, despite hard regulatory rules and regulations.
The crypto custody platform of DZ Bank is developed to meet the surging demand for crypto on an institutional level and to ease access to crypto securities. Siemens crypto bonds are one of the most notable crypto assets offered in the industry.
Holger Meffert, the head of securities services & digital custody of DZ Bank noted the commitment of the bank towards the distributed ledger technology.
“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,” he said.
DZ Bank Catering Institutional Investors, Particularly or Private Customer Too?
In coming years, DZ Bank will expand its services for private customers that are interested in crypto assets such as Bitcoin and others. The Bank aims to expand its platform services for individual investors, which might boost crypto adoption in the coming times.
DZ Bank filed its application for the license of crypto custody services with the Federal Financial Supervisory Authority (BaFin) in June 2023. Banks seem to be following the advancement of technology.
There is a long journey in the banking sector. In earlier days the information of users, consumers, and clients was stored in written form and after computer evolution a shift in bank operations was seen and from computer to blockchain is an appreciated journey.
Is Blockchain Technology the Future of Traditional Banking?
Following the advancement of technology, traditional banking has shifted itself towards blockchain technology and it seems like one day every bank in the world will adopt blockchain.
When the concept of banking evolved, the entire transaction or data record was stored in the written format on paper, but the technology of blockchain entered the world like a bane and since now it has contributed majorly to revolutionizing the banking sectors.
In the past few years, dark clouds seem to be roaming above the reputation of blockchain technology because of the Lazurus group which is constantly challenging the blockchain mechanism by breathing the code and firewalls.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
