Germany’s Third-Largest Bank Rolls Out Crypto Custody Services for Institutional Clients
In a year filled with challenges for the cryptocurrency sector, significant banks have achieved notable advancements, with Germany often taking a leading role. Germany’s DZ Bank AG has introduced a blockchain-powered platform for managing and safeguarding digital assets, including Siemens’ cryptocurrency bond.
Blockchain-Powered Platform
This platform is designed for institutional customers, providing them with access to crypto securities, including Siemens’ cryptocurrency bond, which DZ Bank initially acquired half a year ago and is now eligible for self-custody.
The initiative is a significant move toward distributed ledger technology (DLT) in the capital market’s future. The bank initiated the development of this platform according to the Electronic Securities Act (eWpG) in 2022. It has already completed the initial external transaction involving crypto fund shares from Bankhaus Metzler, handling both processing and custody.
The bank’s recently launched platform received infrastructure assistance from Metaco, a subsidiary of Ripple Labs, selected for its Harmoniz platform. This collaboration was initially revealed in February 2023.
Furthermore, as part of its growth strategy, DZ Bank submitted an application for a crypto custody license from BaFin in June 2023. This move aims to allow institutional clients to invest in cryptocurrencies like Bitcoin in the forthcoming period. Additionally, the bank is developing an option that will empower individual customers to invest in cryptocurrencies directly.
DZ Bank Ventures into Crypto Custody for Private Customers
In its official statement, DZ Bank also disclosed its active efforts to introduce cryptocurrency custody and trading services to its individual customers. The bank revealed that it had recruited ‘over a dozen employees’ to fulfill various roles.
As early as March 2023, Finbold stated DZ Bank’s ongoing initiatives to provide a Bitcoin option to its clients before the conclusion of this year. This announcement coincided with the launch of Deutsche WertpapierService Bank AG’s wpNex platform.
The introduction of this platform has allowed over 1,200 affiliated banks to extend Bitcoin trading and investment opportunities to their retail clients
InvestingPro’s Expert Perspectives
Considering the recent developments at DZ Bank AG, it is essential to assess Siemens’ financial standing and future prospects. Siemens is expected to see an increase in net income this year, having maintained profitability over the past twelve months.
According to InvestingPro data, as of Q3 2023, Siemens enjoys a market value of $109,794.65 million. As of Q3 2023, the company’s sales for the previous year were $83,967.7 million, representing an 11.76% increase in growth. A noteworthy aspect is Siemens’ consistent dividend payments spanning 32 consecutive years, with a dividend return of 3.33% in 2023.
These insights from InvestingPro suggest that Siemens’ participation in DZ Bank’s initiative of a blockchain-powered platform might be a strategic move, considering the company’s robust financial performance and promising growth potential.
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