DekaBank Enters Crypto Market with Trading and Custody Services

DekaBank, a prominent German investment bank with over €377 billion in assets under management, has launched cryptocurrency trading and custody services for institutional clients following nearly two years of development. The Frankfurt-based company's move comes after securing regulatory approval for a crypto custody license from the Federal Financial Supervisory Authority (BaFin) and operating under the supervision of the European Central Bank (ECB).

Board member Martin K. Müller expressed confidence in the bank's new offering, stating, "We have the necessary experience, required licenses, and a tested, ready-to-use infrastructure to support savings banks and our institutional clients." DekaBank, the asset manager of Germany's largest financial services group, Sparkassen-Finanzgruppe, is marketing its new service with a focus on security and regulatory compliance.

DekaBank's entry into the cryptocurrency market follows similar moves by other financial institutions in Germany. Landesbank Baden-Württemberg (LBBW), for instance, has partnered with crypto platforms like Bitpanda to enable corporate clients to buy and sell cryptocurrencies. Additionally, Germany's cooperative banks, led by DZ Bank, are planning to introduce a cryptocurrency offering for private customers by mid-year, in collaboration with IT service provider Atruvia and the Stuttgart Stock Exchange.

The German banking sector's growing interest in cryptocurrencies reflects the increasing demand for digital assets from both institutional and retail clients. As regulations become clearer and more institutions enter the market, the German crypto landscape is expected to become more competitive and innovative.