Top German Bank DekaBank To Unveil Tokenization Platform In 2024
DekaBank, a 105-year-old German bank, has partnered with Metaco, a crypto asset company, to introduce a blockchain-based tokenization platform. Andreas Sack, DekaBank’s executive in charge of digital asset custody, stated that the bank aims to launch this platform in 2024, with the infrastructure expected to be in place by 2023.
DekaBank Will Not Offer Crypto Trading Services
“The infrastructure for the tokenization platform will be complete in the near future. This will lead to the introduction of the first viable product in DekaBank’s crypto custody solution,” Sack said.
According to him, it is opprobable that the initial test transactions of the tokenization platform will occur this year. On January 31st, the bank officially revealed its collaboration with Metaco by announcing its intention to utilize Harmonize as the central platform for an institutional crypto offering.
As stated by Sack, the impending offering will entail converting assets such as bonds, funds, and stocks into tokens. This conversion will help establish a novel token-based economy.
“Metaco plays a crucial role in this economy as it serves as the key management solution for tokenized assets across various blockchains,” he added. In addition, the executive mentioned that several blockchains like Polygon and Ethereum could be used for tokenization.
However, he noted that it is not sure if one blockchain will become a standard. Sack stated that as part of its collaboration with Metaco, DekaBank does not intend to provide trading services for cryptocurrencies, including Bitcoin.
The executive pointed out that the bank focuses on regulated products that follow the German Electronic Securities Act.
Germany Named Top Crypto-Friendly Nation In 2022
According to him, crypto regulation is different in various regions. Then, he explained that “Digital currencies are tradable globally, with varying levels of regulation in different regions. Some areas have strict regulations, while others have minimal to no regulations. These disparities can lead to significant implications and carry substantial risks.”
The recent revelations regarding DekaBank’s forthcoming digital asset platform arrive as several prominent local banks enter the crypto sector. According to reports, DWS Group, the asset management division of Deutsche Bank, is looking to invest in two German cryptocurrency firms, Tradias and Deutsche Digital Assets.
Meanwhile, Deutsche Bank is one of the prominent financial service providers worldwide. In 2022, Germany was named the world’s most favorable crypto economy based on various rankings.
This was due to its positive outlook on cryptocurrency, clearly defined crypto tax regulations, and open and transparent regulatory communication. Besides, the German financial regulatory body, BaFin, has granted numerous licenses to crypto firms, such as Bitpanda and Coinbase.
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