Key Notes
- The Frankfurt-based bank secured necessary approvals from the European Central Bank and BaFin, positioning itself to support savings banks with crypto expertise.
- DekaBank joins a growing trend of German financial institutions embracing digital assets, including LBBW, DZ Bank, and Commerzbank.
- This institutional adoption bridges traditional finance with cryptocurrency markets, potentially setting regulatory precedents while bringing increased capital and liquidity.
DekaBank has now allowed cryptocurrency-related services—such as buying, selling, custody, and management—for institutional clients. The German investment bank manages €377 billion ($395 billion) in assets, and this new feature comes after nearly two years of preparation.
According to a Bloomberg report, private buyers are excluded from this service. The Frankfurt-based company has obtained a digital asset custody license under the German Banking Act, approved by the European Central Bank and the Federal Financial Supervisory Authority (BaFin). This regulatory compliance aims to attract institutional clients with enhanced security measures.
DekaBank Board Member Martin K. Müller stated that the bank has what it takes to assist savings banks and other institutional clients. Müller said:
“We have the necessary experience, the required licenses and a tested and ready-to-use infrastructure to support savings banks and our other institutional customers.”
The bank also believes that institutional investors should be able to manage the risks associated with crypto investments, as they already have the expertise, capital, and systems to handle such situations.
German Banks Strengthen Crypto Offerings
Several firms within the country’s savings bank network have introduced digital asset services for institutional clients. Landesbank Baden-Württemberg (LBBW), for example, has teamed up with Bitpanda to provide corporate clients with a platform for buying, selling, and storing cryptocurrencies like Bitcoin BTC $91 804 24h volatility: 4.4% Market cap: $1.82 T Vol. 24h: $53.34 B .
Moreover, Volksbanken and Raiffeisenbanken intend to roll out crypto access for retail customers as soon as summer, an initiative led by DZ Bank. The service was developed in collaboration with technology provider Atruvia and the Stuttgart Stock Exchange to create a trading system for Germany’s cooperative banks.
Similarly, in September 2024, Commerzbank partnered with Deutsche Börse subsidiary Crypto Finance to offer crypto trading and custody to its corporate clients. The bank handles custody, while Crypto Finance facilitates transactions. The service now supports Bitcoin and Ethereum.
Growing Institutional Adoption and Future Prospects
Although it is still uncertain how the savings bank network will approach crypto services for private customers, having previously kept its distance from such offerings. DekaBank’s decision to offer crypto-related services helps connect traditional finance with the crypto sector. It is an approach that might also encourage more institutions to enter the market, potentially bringing in large-scale capital and liquidity.
Also, the careful process the company used to offer its new services could set an example for following rules in crypto. It might also encourage other banks and financial companies to do the same, helping create clearer rules and lowering worries about illegal activities.
Traditional banks adopting digital assets may make crypto more accessible to everyday users. This could also pave the way for crypto regulations that protect both institutional and retail investors.
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