DZ Bank, the third-largest German bank, is entering the world of crypto custody for institutional investors. 🏦💸

- DZ Bank AG has introduced its own digital asset custody platform, utilizing blockchain technology. This platform is designed to serve institutional clients and offer them access to crypto securities, such as the crypto bond from Siemens.

- The Head of Securities Services & Digital Custody at DZ Bank, Holger Meffert, expressed the bank's keen interest in distributed ledger technology (DLT). He predicts that a significant portion of capital market business will be processed through DLT-based infrastructures within the next decade, seeing DLT as a complementary technology to existing capital market processes.

- DZ Bank has applied for a crypto custody license from the Federal Financial Supervisory Authority (BaFin) in June 2023. This move signifies their intention to allow institutional investors and private customers to purchase cryptocurrencies, including Bitcoin, in the future.

- This initiative by DZ Bank reflects a broader trend among German banks towards embracing cryptocurrencies and blockchain technology, despite the country's strict regulatory environment. Other financial institutions, including Deutsche WertpapierServiceBank (Dwpbank), asset management group DWS, Commerzbank, and DekaBank, are also pursuing crypto custody licenses, aiming to provide customers with access to the world of digital assets.

In summary, DZ Bank's foray into crypto custody is a significant development, highlighting the growing interest and adoption of cryptocurrencies and blockchain technology by traditional financial institutions in Germany.

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