Germany’s DZ Bank to Provide Crypto Custody with Swiss Firm Metaco

Germany’s second largest financial institution, DZ Bank, is getting ready to become a provider of custody services for crypto assets. The alliance will enable the provision of services from Swiss company Metaco, which serves financial establishments in the digital asset space.

DZ Bank To Utilize Metaco’s Harmonize Platform For Crypto Custody Services Launch

DZ Bank, part of Volksbanken Raiffeisenbanken, is one of the biggest banks in Germany. Metaco has made a platform to provide institutional investors with digital currencies and cryptocurrencies.

Regulated by the Federal Financial Supervisory Authority (BAFIN), DZ Bank is the second biggest financial institution in the country, and it has long been a custodian of assets. At the end of 2022, it held assets in custody worth 297 billion euros (around $315 billion).

Metaco, founded in Switzerland in 2015, is aiming to enable both financial and non-financial institutions to offer crypto operations. Its infrastructure allows players to store and trade cryptocurrencies, tokenize other assets, provide staking services and manage smart contracts.

DZ Bank is intending to include Metaco’s Harmonize platform, which allows digital asset holders to manage their assets, into its existing asset management services. Craig Perrin, Metaco’s Director of Sales commented,

“Metaco’s digital asset technology infrastructure is specifically designed to help financial institutions take advantage of the digital asset economy.”

The German bank puts an emphasis on regulatory compliance. They chose Metaco after a thorough proof-of concept and due diligence process. Nils Christopeit, Lead Designer of Digital Custody Solutions at DZ BANK, explained

“In terms of our security, scalability and future needs of our digital asset custody initiative for institutional clients, starting with crypto assets in accordance with German eWpG, Metaco Harmonize has proven to be a solid solution.”

Christopeit referred to the Electronic Securities Law (Gesetz zur Einführung elektronischer Wertpapiere, abbreviated EWpG in German), which was passed in 2021 to replace the nation’s securities laws and related supervisory framework. The law came into effect on June 1, and the government has accepted 10 percent of the yearly amount as a key element in the adoption of blockchain technology in Berlin.

Do you think that other big German banks will take advantage of the opportunity to offer digital asset services? You can leave us a comment in the section below.