Key Takeaways
- German bank DekaBank has received regulatory approval to offer crypto trading and custody for institutional clients.
- The decision to offer crypto services is primarily driven by the increasing adoption of leading financial institutions in Germany and the US, which is driven by global interest.
- Other German banks and financial groups are waiting in line to offer crypto services for individual and corporate customers upon regulatory approval.
German investment bank DekaBank has launched crypto trading and custody services for institutional clients after two years of waiting for regulatory approval from the country’s financial regulator, BaFin.
Ready-to-use, Tested Infrastructure
According to a Bloomberg report, the bank that oversees over $395 billion in assets received regulatory approval for a crypto custody license from the Federal Financial Supervisory Authority (BaFin). The bank now operates under the European Central Bank’s (ECB) oversight, reinforcing its commitment to secure and compliant digital asset services.
Commenting on the development, DekaBank board member Martin K. Müller observed that the bank had all the necessary experience, required licenses, and a tested, ready-to-use infrastructure for offering crypto-related services. Muller stated:
“We have the necessary experience, required licenses, and a tested, ready-to-use infrastructure to support savings banks and our institutional clients.”
Other Banks Joining the League
The development comes when the global financial sector is experiencing a paradigm shift toward the crypto space, with the Trump administration in the US leading the way. Since his election and inauguration, President Donald Trump has methodically taken steps to overhaul the country’s crypto regulations in keeping with his electoral campaign pledge to make America the crypto capital of the world. The move has motivated several financial institutions worldwide to explore digital assets.
Germany’s banking sector is keen on embracing the crypto concept, with leading banks like Landesbank Baden-Württemberg (LBBW) partnering with crypto firm Bitpanda to allow corporate clients to trade digital assets. On the other hand, the country’s cooperative banks, led by DZ Bank, have announced plans to introduce crypto-related services by mid-2025. The crypto initiative was developed alongside IT service provider Atruvia and the Stuttgart Stock Exchange, highlighting the country’s desire not to be left behind as the rest of the world adopts the crypto economy.
Conclusion
According to the Bloomberg report, DekaBank is promoting its new crypto services by offering exclusive services based on robust security. As the asset manager for Germany’s most prominent financial group, Sparkassen-Finanzgruppe, DekaBank will market its new programs as secure and fully compliant with regulations.
