DekaBank Expands into Cryptocurrency Trading and Custody Services
DekaBank, a prominent German investment bank with a substantial 377 billion euros (approximately $395 billion) in assets under management, has officially launched cryptocurrency trading and custody services tailored for institutional clients. This significant development comes after nearly two years of meticulous planning and technological advancement.
Based in Frankfurt, DekaBank’s foray into the crypto space follows the recent receipt of regulatory approval for a crypto custody license from the Federal Financial Supervisory Authority (BaFin). The bank will operate under the vigilant supervision of the European Central Bank (ECB), ensuring compliance with stringent regulatory standards. In an interview with Bloomberg, board member Martin K. Müller emphasized, “We possess the necessary experience, required licenses, and a tested, ready-to-use infrastructure to effectively support the savings banks and our institutional clientele.”
As the asset manager for Germany’s largest financial services group, Sparkassen-Finanzgruppe, DekaBank is strategically marketing its new cryptocurrency services by emphasizing a commitment to security and regulatory compliance. This move aligns with a broader trend in the country’s savings bank sector, where various financial institutions are beginning to explore cryptocurrency offerings. For instance, Landesbank Baden-Württemberg (LBBW) has established partnerships with crypto platforms like Bitpanda to enable corporate clients to easily buy and sell digital currencies.
In addition, Germany’s cooperative banking sector, led by DZ Bank, is preparing to launch its own cryptocurrency services aimed at private customers by mid-year. This initiative is being developed in collaboration with IT service provider Atruvia and the Stuttgart Stock Exchange.
As of the time of publication, DekaBank had not provided a comment regarding these developments.
