The introduction of cryptocurrencies in the traditional banking industry is spreading across the board and has arrived at a bank based in Hamburg. Donner & Reuschel will enter the crypto business by offering appropriate custody services.
The bank will also investigate other blockchain projects
According to the local magazine Asscompact, the Hamburg-based private bank will offer crypto purchase and custody services. Although Donner & Reuschel has not given an exact launch date, they expect the products to be delivered “as soon as possible”.
Marcus Vitt, a spokesman for the bank, argued that the decision to get into the crypto business was linked to the surge in interest in digital assets:
We have been observing the market for digital assets for some time and are convinced of the potential of blockchain technology for traditional securities transactions too.
Donner & Reuschel is a subsidiary of Signal Iduna, a group that offers insurance and financial services based in Dortmund. In addition, Vitt stated that there is a high demand for crypto custody services in Germany and that the bank does not want to lag behind the trend.
The bank spokesman added:
Blockchain technology will lead to the greatest structural change in the financial industry that I have ever seen in my 20-year banking career.
The German bank founded in 1798 with subsidiaries in Luxembourg also indicated that it would investigate further blockchain projects. In fact, the local magazine pointed out that Donner & Reuschel is already analyzing some projects, for example those related to tokenization.
Latest crypto regulatory moves in Germany
Germany has seen some moves in its crypto sphere in the past few months. Synbiotic SE, a listed company in Germany that is listed on the Frankfurt Stock Exchange and Xetra, recently announced that it will hedge Bitcoin (BTC) to protect itself from currency devaluations.
Regarding regulation, the federal government passed a new law in December 2020 to introduce fully electronic securities as part of the country’s broader blockchain strategy.
According to the country’s Treasury Department, the new law relaxes regulations that force issuers and holders of securities to document transactions with a paper certificate.
What do you think of this announcement from Germany? Let us know in the comments below.
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