One of Germany's largest banking groups plans to launch cryptocurrency trading services for interested customers this year.
The cooperative finance group, which is comprised of more than 700 regional banks, central banks, professional service providers and institutions, will soon enter the pilot phase of the project, Bloomberg reports.
DZ Bank leads virtual currency trading project
DZ Bank, the central bank responsible for the project, is leading the cooperative financial network. Major banks will soon begin test trading Bitcoin (BTC) and a wide range of other cryptocurrencies with their clients, Souad Benkleda, head of capital markets operations on the central bank's board, told Bloomberg.
“By the end of the year, we plan to enter the pilot phase of retail crypto trading with our first cooperating banks… We don't want to offer just a single crypto trading, but a variety of crypto trading. We want to provide that. This is important to us,” Bencreda said.
Initially, DZ Bank planned to work on the implementation of the new project in cooperation with Deutsche WertpapierService Bank AG (DWP Bank), a securities service provider for savings banks, cooperatives and private banks. However, the deal was scrapped after the former was joined by an undisclosed new partner.
opportunity for self-determination
Bencreda explained that the trading service provides an opportunity for self-determination, as customers trade crypto assets on their own without advice. He cited research from the Geno Association that found one in two banks want to enable solutions for their customers, highlighting the strong need for such services among cooperative banks. revealed. However, each institution must make its own decisions.
While cooperative banks are keen to introduce crypto products into their products, German savings banks remain cautious. The latter committee has even asked banks within the association to refrain from providing virtual currency trading services to their customers.
The latest move by the cooperative comes about a year after DZ Bank partnered with Switzerland's Metaco and orchestration platform Harmonize to provide digital asset custody services to institutional clients. DZ said the product platform has proven to be a great solution and was selected through an extensive proof of concept and thorough process.
