German Banking Group to Launch Crypto Trading Services for Customers

According to CryptoPotato, one of the largest banking groups in Germany plans to launch crypto trading services for interested customers this year. The cooperative financial group, which includes over 700 local banks, a central bank, specialized service providers, and institutions, is set to enter the project's pilot phase soon. DZ Bank, the central bank leading the project, is in charge of the cooperative financial network. Souad Benkredda, responsible for capital market operations on the central bank board, informed Bloomberg that primary banks would soon begin test trading Bitcoin (BTC) and a wide range of other cryptocurrencies with customers. "Over the course of the year, we will enter the pilot phase for retail trading of cryptocurrencies with the first cooperative banks…We don't just want to offer trading of one cryptocurrency, but a variety of cryptocurrencies. This is important to us," stated Benkredda. Initially, DZ Bank was to collaborate with Deutsche WertpapierService Bank AG (DWP Bank), a securities service provider for savings, cooperatives, and private banks, on implementing the new project. However, the deal has been canceled as the former now has a new undisclosed partner. Benkredda explained that the trading services would provide an opportunity for self-decision-making as customers will trade the crypto assets independently, without advice. She revealed that the need for such services among cooperative banks is strong, quoting a study by the Geno Association, which found that every second bank wants to activate the solution for their customers. However, the institutions have to make the decision themselves. While the cooperative banks are keen on introducing crypto products to their offerings, the German savings banks have remained more cautious. The committees of the latter have even urged banks in their association to refrain from offering crypto trading services to their customers. The latest move by the cooperatives comes about a year after DZ Bank entered a partnership with Swiss firm Metaco and orchestration platform Harmonize to offer digital asset custody services to institutional clients. DZ said the platform for the offering has proven to be a remarkable solution and was selected through an extensive proof-of-concept and diligence process.