Germany's DZ Bank launches crypto custody platform for institutional investors
The venture makes DZ Bank one of the first credit institutions to launch an offer for institutional customers based on blockchain technology.
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On November 2, DZ Bank, the third-largest bank in Germany, announced the launch of a digital assets custody platform for processing and safeguarding digital financial instruments on the blockchain. The bank has partnered with Swiss firm Metaco to manage its crypto services using Metaco’s custody technology platform, Harmonize.
The venture makes DZ Bank one of the first credit institutions to launch an offer for institutional customers based on blockchain technology. To implement the new custody solution, the bank has hired over a dozen employees across IT, operations, and compliance.
The digital custody platform, whose development began in 2022, will initially take crypto securities into custody, one of which is a crypto bond from Siemens. DZ Bank and Union Investment subscribed to these bonds six months ago, and they can now be transferred to self-custody.
DZ Bank had previously been a processor and custodian in the first external transaction of crypto fund shares from Bankhaus Metzler. Since both cases fall within the scope of the Electronic Securities Act (eWpG), it means custody is possible with the existing licences.
Additionally, DZ Bank’s existing infrastructure makes them well-positioned to actively participate in the European Central Bank’s (ECB) exploration phase. During this phase, the settlement of large-volume capital market transactions in central bank money is tested.
