Germany’s DZ Bank is set to expand its offerings by providing crypto trading and custody services to 700 cooperative banks, thanks to a new partnership with Boerse Stuttgart Digital. Announced on Thursday, this collaboration aims to create a secure and regulated entry point for retail customers into the digital asset space.
Streamlined Crypto Access for DZ Bank’s Clients
Boerse Stuttgart Digital will supply the technical and operational infrastructure needed for this project. The initiative will allow DZ Bank’s clients to offer their retail customers safe and efficient access to cryptocurrency trading and storage. This infrastructure, already in development, will roll out in phases, beginning with a limited number of retail clients later this year.
Dr. Matthias Voelkel, CEO of Boerse Stuttgart Group, stated, “We offer Boerse Stuttgart Digital’s proven and fully regulated crypto trading and custody infrastructure to financial institutions across Europe.” He emphasized the importance of professionalism, security, reliability, and trust, which aligns with DZ Bank’s priorities.
A Growing Trend Among German Financial Institutions
With over $627 billion in assets under management, DZ Bank has been actively embracing digital assets, having launched its own crypto custody platform in November 2022. This move follows a broader trend among German banks, which have increasingly begun to integrate cryptocurrency services.
Just last month, Kreditanstalt für Wiederaufbau (KfW), Germany’s largest state-owned development bank, partnered with Boerse Stuttgart Digital to issue a blockchain-based digital bond. Similarly, Commerzbank announced plans to offer Bitcoin (BTC) and Ether (ETH) trading services to corporate clients in collaboration with Crypto Finance.
Other major German financial institutions, such as Landesbank Baden-Württemberg (LBBW), are also entering the crypto space. LBBW partnered with Bitpanda to provide cryptocurrency custody services expected to launch this year. Deutsche Bank has been ramping up its digital asset involvement as well, applying for a cryptocurrency custody license from Germany’s financial watchdog in June 2023.
Increasing Demand for Digital Assets in Europe
The move by DZ Bank reflects a growing trend among European financial institutions as demand for digital assets rises. Western Europe has become a hub for global cryptocurrency adoption, with Germany and France leading the way. Austria has seen the most substantial growth in the region, experiencing a 70% surge in crypto users over the past year.
As traditional banks like DZ Bank and Deutsche Bank deepen their involvement in the crypto space, Europe is solidifying its position as a major player in the global cryptocurrency market.