On December 23rd, DekaBank, one of Germany’s largest asset managers, has achieved a significant milestone by obtaining a crypto custody license from BaFin, the German financial regulator, and the European Central Bank (ECB).
The approval allows DekaBank to securely manage and store cryptocurrencies, a move authorised under Germany’s Banking Act (KWG).
Setting the Example for Crypto Adoption?
This step positions DekaBank as a leader among traditional German banks in the evolving digital asset space, joining Commerzbank as one of the few established financial institutions with such a license.
While BaFin has previously issued similar approvals to 11 other firms, most have been crypto-native organisations, making DekaBank’s entry into the space noteworthy.
The bank’s journey into digital assets has been methodical and aligned with Germany’s strict regulatory framework. Earlier this year, DekaBank received approval to act as a crypto securities registrar.
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This allows it to issue blockchain-based securities directly, eliminating the need for intermediaries. This capability aligns with the bank’s broader strategy to integrate digital solutions into its offerings.
DekaBank and Blockchain
DekaBank is also a founding member of SWIAT, a blockchain platform aimed at simplifying digital securities issuance. The platform has already demonstrated its potential. In September, Siemens utilized SWIAT to issue a €300 million digital bond, marking a significant development in blockchain-based financial instruments.
SWIAT also boasts notable participants such as Standard Chartered and LBBW, further solidifying its reputation.
To support its digital asset operations, DekaBank has partnered with Metaco, a Swiss company specializing in institutional cryptocurrency custody and DeFi solutions.
Metaco will provide the technical infrastructure for DekaBank’s custody and capital market needs, pending regulatory approval. This partnership reflects DekaBank’s commitment to expanding its presence in institutional crypto offerings.
Andreas Sack, DekaBank’s digital assets custody lead, emphasized the transformative nature of digital assets, describing them as a “radical new way for how assets will be represented.” With over €360 billion ($390.9 billion) in assets under management, DekaBank’s entry into crypto could drive institutional adoption in Germany and beyond.
CGermany’s regulatory approach to crypto has been deliberate yet stabilizing. The recently passed Supervision of Crypto Markets Act (KMAG) aligns national regulations with the European Union’s Markets in Crypto-Assets (MiCA) framework. This harmonization encourages institutional players to enter the market while ensuring robust safeguards.
DekaBank’s strategic moves underscore its confidence in blockchain technology as a cornerstone of the future financial ecosystem. By embracing regulatory compliance and technological innovation, it is setting an example for other traditional financial institutions navigating the digital transformation.
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