Major German Securities Firms to Offer Cryptocurrency-Related Services to Institutional Investors


Partnership with cryptocurrency custody company METACO

Swiss crypto asset (virtual currency) custody company METACO announced on January 31 that it will partner with DekaBank, a major German securities service provider, to provide institutional investors with custody and management services for digital assets, including cryptocurrencies. Announced.

DekaBank is a company that provides a wide range of services such as custody and asset management to the German Savings Bank financial group. As of September 2022, the total customer assets have reached approximately 51 trillion yen (363 billion euros), and the number of brokerage accounts has reached more than 5.2 million.

Andreas Sack, Head of Digital Asset Custody at DekaBank, commented:

Digital assets are fundamentally reinventing the face of various assets, from currencies to real estate, and will be important in the future.

Today, with our partnership with METACO, we have taken an important step in laying the groundwork for making this innovation opportunity accessible to institutional investors and millions of others in Germany.

Both companies will need to apply for and be granted a license from the German Federal Financial Supervisory Authority (BaFin) in order to provide digital asset services.

What is custody

Custody refers to holding and managing assets on behalf of investors. It refers to a service that performs a wide range of operations, such as asset custody, settlement related to trading, receipt of principal and interest, dividends, and exercise of voting rights. A company that performs custody is called a custodian.

Cryptocurrency Glossary

Introduced Harmonize

In the partnership, METACO’s digital asset integration system “Harmonize” will be introduced for DekaBank’s digital asset management.

Harmonize is a digital asset orchestration system. It is possible to store and trade virtual currencies, tokenization, staking, and smart contract management, and it is also useful for connecting financial institutions and decentralized finance (DeFi).

As of now, no details have been given as to what kind of digital assets DekaBank will manage.

Partnership with Citi

In June 2022, METACO announced a partnership with Citi, one of the world’s leading global banks. It plans to develop and test a digital asset custody platform for institutional investors.

At this time, it was reported that the platform would be developed for tokenized securities (security tokens) first, not for cryptocurrencies in general.

Relation: Partnership with financial giant Citi and cryptocurrency company METACO

What is a security token

Security tokens are “tokenize securities and exchange them on the blockchain”. Securities must prove the assets they hold, and based on the fact that their value is secured by legal currency, etc., security tokens can be rephrased as “stocks, bonds, etc. managed on the blockchain”. be done.

Cryptocurrency Glossary

German cryptocurrency policy

In October 2022, Coincuba, a cryptocurrency analysis company, ranked Germany as the top cryptocurrency country in the world.

Germany is at the top because it has a “positive outlook” for cryptocurrencies, is working to clarify regulations, and has preferential tax treatment for long-term investments in cryptocurrencies. mentioned.

Relation: Global cryptocurrency ranking | Germany keeps first place overall, Japan falls to 27th place

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