DZ Bank partners with Ripple to launch blockchain custody service

DZ Bank launches a blockchain-based digital asset custody platform, advancing Germany’s crypto services for institutional and private clients.

The second largest bank in Germany, DZ Bank, has unveiled a proprietary service for safeguarding crypto assets, targeting institutional clientele. This service will leverage the capabilities of Metaco Harmonize, a platform developed by the blockchain firm Ripple.

The move signifies a merger of conventional banking and blockchain in Germany.

The partnership also signifies an achievement for Ripple, as the blockchain’s integration across traditional banking continues to grow. Ripple has been on a hot streak since last week, after the SEC dropped its long-lasting lawsuit against the firm, and XRP has rallied over 33% in a fortnight. 

Germany’s growing crypto and blockchain adoption

DZ Bank is actively expanding its services to eventually enable individual and institutional clients to purchase digital currencies directly, with Bitcoin cited as a prime example. In preparation for this expansion, DZ Bank sought regulatory approval in mid-2023, submitting an application for a cryptocurrency custody license to BaFin, Germany’s finance watchdog.

This development is part of a larger trend among German banking institutions, adapting to a growing interest in digital currencies despite the country’s stringent regulatory landscape. Efforts to integrate cryptocurrencies into conventional financial services are accelerating. The country’s blockchain funding has increased by 3% this year, as major exchanges like Coinbase have recognized Germany as a key region for web3 talents. 

Earlier in the year, Deutsche WertpapierServiceBank made a significant leap by introducing wpNex, a trading platform for digital assets, providing a gateway for over a thousand German banks into the cryptocurrency industry. Additionally, DWS Group, with a controlling interest held by Deutsche Bank, has made public its initiatives towards launching crypto-related exchange-traded products in Europe.