German Banks Are Now Slowly Adopting Crypto

By Kevin • May 26, 2023 3:22 pm • Comments

In the past, German banks have been extremely reluctant to get involved in the cryptocurrency industry due to the perception that it was too speculative and unregulated.

It looks like this is now changing as more and more German banks are now getting involved in the space.

The reason for this may be because they are fearful that they are missing out on a game-changing industry and also due to growing demand from institutional investors.

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Additionally, with the launch of Deutsche’s wpNex crypto platform, around 1200 German banks now have convenient access to the crypto markets.

This makes bank involvement extremely easy and convenient which will likely speed up crypto adoption at a rapid rate.

CoinTelegraph reports:

Deutsche WertpapierServiceBank (Dwpbank) took an important step in March 2023 with the launch of its wpNex crypto trading platform, which gives 1,200 banks and savings banks in Germany access to the digital asset industry.

However, it remains to be seen how well affiliate banks will receive the offering and whether it will live up to expectations.

“In addition to our pilot customer MLP Banking, we are also in close contact with DZ Bank [Germany’s second-largest bank by assets held] about our offer,” Heiko Beck, Dwpbank CEO, told Cointelegraph, adding that there are “a few other interested parties from the customer base,” without disclosing who.

This does not necessarily mean that all 12o0 banks will be directly involved, but it makes a future shift extremely easy if institutional investors continue to demand access to digital assets in the future.

What really gives investors a new vote of confidence is the fact that one of Germany’s largest traditional financial institutions is now interested in crypto assets.

If such a traditional institution is getting involved, this will likely inspire all other firms to get involved as well.

As a result, it is expected that the crypto market cap will continue to expand in the long term future due to new intuitional investors entering the space every year.

This is happening despite the recent news that Germany has now officially entered a recession.

Watcher.guru reports:

With the introduction of its wpNex cryptocurrency trading platform in March 2023, Deutsche WertpapierServiceBank (Dwpbank) made a significant advancement.

With this change, 1,200 banks and savings institutions in Germany now have access to the digital asset market. But it’s unclear how affiliate banks will react to the offering and whether it’ll meet expectations.

For its large institutional clients, Deutsche Bank focuses on cryptocurrency custody solutions. This means that in the future, investment or pension funds will be able to keep their cryptocurrency at Deutsche Bank.

However, the bank won’t be providing any cryptocurrency-related goods or services to business or private customers any time soon, though.

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