For a long time, German banks had little interest in cryptos. Even if the game does not seem to be really reversing, the latest trends indicate a change in dynamics. More and more institutional investors are embracing cryptos for the potential they present.
German banks, more and more attracted by cryptoassets?
Crypto adoption is growing in Germany, especially by institutional investors. We have seen this recently with the operational progress of the Deutsche WertpapierService Bank AG (dwpbank). Thanks to the latter’s wpNex platform, around 1,200 banks should soon be able to provide crypto services to their users.
Presumably, this development is only the tip of the iceberg. Because basically banks’ interest in cryptos is sustained. Indeed, recent data shows that large commercial banking groups want to offer crypto services to their customers.
This is the case of Deutsche Bank and the asset management company DWS, of which it is the majority shareholder. In April, DWS made its interest in crypto clear by teaming up with crypto firm Galaxy Digital. Objective: to develop digital solutions that promote user access to digital assets and the possibilities offered by the blockchain.
And DWS is not the only commercial bank with such ambitions. Commerzbank and DekaBank, for example, have initiated formalities with the Federal Financial Supervisory Authority (BaFin). Their ambitions are clear. They want to get permission to provide secure custody of digital assets.
Others like cooperative banks Volksbank and Raiffeisenbank already offer crypto-asset related services to their customers. Typically private or even family-owned banks are also taking the crypto market by storm. Some such as Bankhaus Scheich, Bankhaus von der Heydt, or even Hauck Aufhäuser Lampe Privatbank stand out in particular. The services they offer now include the exchange and secure custody of cryptos through the tokenization of investments.
As we can see, the institutional adoption of cryptos in Germany tends to become widespread despite the reluctance. For experts, this trend is explained by the fact that banks are afraid of missing the technology boat.
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