DZ Bank, the second largest bank in Germany, has been serving as a cryptocurrency custody platform since last November. Initially, the bank, with $627 billion in assets under management, worked with Ripple and later with the Swiss tech company Metaco. In the latest development, the Frankfurt-based bank plans to introduce digital trading services for interested customers.
These services will be provided in Bitcoin and several other currencies. Souad Benkredda, a member of the board of DZ Bank responsible for the bank’s capital market operations, stated, “Over the course of the year, we will enter the pilot phase for retail trading of cryptocurrencies with the first cooperative banks…We don’t just want to offer trading of one cryptocurrency but a variety of cryptocurrencies. This is important to us.”
The statement was made in an interview with Bloomberg News. The development comes as an indication of broader institutional interest in blockchain technologies. German cooperative banks are more open to providing their interested customers with services based on digital currencies.
DZ Bank Decision Signals Shift in European Institutions
Benkredda emphasized the importance of authority over the asset, which is to be exercised by the clients of DZ bank in case of trading. With reference to Genoverband’s study, she also stated that every second bank wants to offer this solution to their customers.
The leaning of European banks towards the use of digitalized currencies is a positive sign for the global blockchain sector. After the approval of their spot exchange-traded fund (ETF) applications in the United States, institutions such as BlackRock and Fidelity have observed billions of dollars in customer acquisitions within the last month.
Institutional Adoption Expected to Push Algotech (ALGT) to New Heights
As institutional adoption picks up pace in key global regions, investors are also starting to focus on cutting-edge applications in fintech. TradFi platform Algotech (ALGT) has emerged as a major highlight for investors after the platform’s successful private seed round. The $1.1 million raise will be used to develop core features.
Algotech (ALGT) has also been under headlines because of the platform’s unique tokenomics. With a limited supply, the project is expected to give profit shares to token holders along with governance rights. According to analysts, the token is expected to skyrocket from its current price of $0.04 once the presale stage is concluded.
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