DZ Bank Ready To Trial Crypto Trading For Retail Customers

JAKARTA - DZ Bank, Germany's second-largest bank, plans to pilot crypto trading services for retail customers this year. The bank wants to leverage the growing potential of the crypto market and provide new investment options for its customers.

According to a Bloomberg report, Frankfurt-based DZ Bank will offer crypto trading services to more than 700 community banks that are members of its network. This service is intended for private customers who want to invest in crypto independently without the need for financial advice.

Souad Benkredda, a member of the DZ Bank board in charge of capital market operations, said the bank would start a trial phase with the first cooperative bank this year. "We don't just want to offer one crypto trading, but various cryptocurrencies. This is important for us," he said.

Benkredda also cited a study from Genoverband, an audit association and consultant for more than 2,500 cooperative organizations, showing that half of its member banks want to offer crypto solutions to their customers. However, he added that each agency will make decisions independently.

DZ Bank is not the only bank in Germany interested in crypto. Several local banks, such as Volksbank Raiffeisenbank Bayern Mitte eG, have expanded crypto options as part of their Bitcoin strategy. On Wednesday, the bank announced a long-term partnership with Terahash, a Bitcoin energy consulting firm, to develop new offerings.

Reported by Cryptonews, DZ Bank itself launched a blockchain-based digital deposit platform last November. The platform is designed to serve institutional clients, such as companies, funds, and other banks, who wish to engage in crypto investments. The platform also allows clients to access crypto securities, such as crypto bonds from Siemens, which were transscribed by DZ Bank six months ago.

That same month, DZ Bank also signaled that it plans to provide crypto purchase options for institutional investors and individual customers. The move comes after the bank submitted a crypto deposit license application from German financial regulator BaFin in June 2023.

Holger Meffert, head of digital deposit at DZ Bank, expressed optimism for the development of blockchain-based infrastructure in the future. "We assume that in the next ten years, most capital market businesses will be processed through distributed ledger technology-based infrastructure (DLT)," he said. "In the medium term, we see DLT as a complementary technology for existing infrastructure in the existing capital market process."

With this crypto trading trial plan, DZ Bank demonstrates its commitment to innovating and meeting customers' growing demand. The bank is also following a global trend from financial institutions that are starting to accept and offer digital assets, such as BlackRock and Fidelity, which have received approval for Bitcoin ETF in the US last month.