Expansion into Cryptocurrency Trading
DZ Bank, the second largest bank in Germany, has announced plans to launch a trial for retail cryptocurrency trading. The Frankfurt-based bank is gearing up to introduce this service to its network of over 700 community banks.
Souad Benkredda, DZ Bank board member overseeing capital market operations, stated,
“Over the course of the year we will enter the pilot phase for retail trading of cryptocurrencies with the first cooperative banks.”
The service will target private customers who are adept at navigating the world of cryptocurrencies independently, without the need for financial guidance.
- Benkredda referenced a study by Genoverband, revealing that “every second bank wants to offer this solution for their customers,” indicating a growing trend in the banking sector.
- Despite this interest, each bank will autonomously decide whether to provide cryptocurrency services to their clients. For instance, local banks like Volksbank Raiffeisenbank Bayern Mitte eG have already begun integrating Bitcoin-related options into their strategies.
Embracing Blockchain Technology
With assets worth $627 billion under management, DZ Bank introduced a blockchain-powered digital custody platform last year. This innovative platform is tailored for institutional clients, facilitating their foray into cryptocurrency investments.
Holger Meffert, head of digital custody at DZ Bank, expressed optimism about blockchain’s future prospects:
“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.”
Meffert believes that DLT will complement traditional capital market processes, paving the way for new possibilities in the financial landscape.
