DZ Bank, the second largest bank in Germany, has formed a major partnership with blockchain company Ripple to launch a groundbreaking new cryptocurrency custody service. This service will utilize Ripple’s sophisticated Metaco Harmonize platform to securely store digital assets for both high-net-worth individuals and institutional investors seeking exposure to the burgeoning crypto space.
This landmark development signifies the continuing convergence of traditional finance and blockchain technology within the German banking industry. It also marks a major triumph for Ripple, as the adoption of its blockchain by conventional banks continues to accelerate rapidly. Ripple’s popularity has surged in recent weeks after the SEC finally dropped its long-running lawsuit against the company. As a result, the price of Ripple’s XRP token has rallied over 33% in the last two weeks alone.
The new crypto custody service from DZ Bank and Ripple is part of a broader trend among German banks to actively embrace digital asset innovation despite the country’s traditionally stringent regulatory environment. DZ Bank is aggressively expanding its services and now plans to eventually enable both institutional and retail clients to purchase leading cryptocurrencies like Bitcoin directly. To prepare for this expansion, DZ Bank took the proactive step of submitting an application for a full cryptocurrency custody license to BaFin, Germany’s financial regulator, back in mid-2023.
Other major banking institutions across Germany are also racing to integrate cryptocurrencies into their conventional financial services and products as client demand for crypto surges. Blockchain-related funding in Germany has already increased by 3% this year.
Earlier in 2023, Deutsche Bank rolled out a trading platform for digital assets called wpNex, delivering a regulated gateway for over 1000 German banks to enter the crypto space. Additionally, DWS Group, a firm with controlling interest held by Deutsche Bank, has publicly declared plans to launch new crypto exchange-traded products across Europe.
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