Germany’s DekaBank has achieved a cryptocurrency custody license from BaFin, the nation’s monetary regulator, and the European Central Financial institution (ECB).
The license, granted underneath Germany’s Banking Act (KWG), permits DekaBank to securely handle and retailer cryptocurrencies for its purchasers.
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Regulatory Wins For Germany’s DekaBank
DekaBank Will get Inexperienced Gentle for Crypto Custody from BaFin and ECB!
In a groundbreaking transfer for the German banking sector, DekaBank has secured approval from each BaFin and the ECB to supply crypto custody providers, becoming a member of the ranks of conventional banks venturing into digital… pic.twitter.com/tQ3DzWpcn1
— Cryplish Crypto (@Lutcheann) December 22, 2024
This isn’t DekaBank’s first foray into blockchain and digital belongings this yr.
In July 2024, the financial institution secured a license to function as a crypto securities registrar. This allows DekaBank to situation blockchain-based digital securities with out counting on a central securities depository (CSD), streamlining processes and lowering intermediaries—an indicator of blockchain innovation.
DekaBank has additionally been instrumental in creating blockchain infrastructure by means of its founding function in SWIAT (Safe Worldwide Interbank Asset Switch), a platform designed for digital securities issuance.
SWIAT has attracted main gamers like Customary Chartered and Landesbank Baden-Württemberg (LBBW).
Notably, Siemens utilized SWIAT in September 2024 to situation a €300 million digital bond, highlighting the rising adoption of blockchain in company finance.
Germany’s Evolving Crypto Panorama
DekaBank’s achievement comes amidst important regulatory developments in Germany.
The lately handed Supervision of Crypto Markets Act (KMAG), a part of the broader Digitalization of Monetary Markets Act (FinmadiG), aligns Germany’s crypto rules with the EU’s Markets in Crypto-Property Regulation (MiCA).
KMAG replaces older nationwide guidelines with MiCA’s unified framework, enabling establishments like DekaBank to increase their crypto operations throughout Europe
BaFin Lately Issued 11 Different Crypto Custody Licenses
This transfer follows an identical achievement by Commerzbank, which grew to become the primary conventional German financial institution to safe a crypto custody license final yr.
Whereas BaFin has issued 11 different crypto custody licenses, these have primarily gone to crypto-native corporations reminiscent of Hauck Aufhäuser Lampe Privatbank’s digital asset arm.
What units DekaBank aside is its regulatory framework. In contrast to licenses granted to crypto-specific corporations, DekaBank’s approval falls underneath stricter conventional banking rules. This distinction not solely underscores its legitimacy but additionally displays a broader development of established monetary establishments integrating blockchain expertise into their providers.
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