A few weeks ago, World Bank issued permission for private banking enterprises to invest in cryptocurrencies. With the latest changes happening in the cryptocurrency markets, there are more traditional banks and other financial services that are opening to cryptocurrency payments. The latest bank to join the crypto bandwagon is DZ bank hailing from Germany.

With the latest announcement, DZ has become one of the first banks in the world to offer cryptocurrency custodial services. However, at present, the service is available for commercial users only. The bank is regulated by BaFin the biggest financial regulator in the region.

DZ Bank Partners with Swiss Firm to Offer Crypto Custodial Services

To make cryptocurrency custodial services possible, DZ bank has partnered with a Swiss firm called Metaco and a crypto management firm called Harmonize. The service has been made official in the form of a detailed press release by DZ bank officials.

The press release has informed the stakeholders that Harmonize is a governance network and is used for risk management and compliance controls. At the same time, this platform will classify businesses and other commercial clients based on their personalized requirements for suitable users, accounts, and assets.

There is an increasing possibility that more banking enterprises follow suit in the steps of DZ bank to keep up with the competition.

Nils Christopeit is the head of the digital currency custody department at DZ bank. Speaking to the media he said that the Metaco Harmonize system is an ideal option for ensuring scalability, security, and another requirement to cater to the needs of commercial custodial services for cryptocurrencies. He revealed that the bank has selected the Proof of work mechanism.

DZ bank is considered one of the top banking enterprises in Germany with an estimated AUM of 297 billion euros in 2022.

Metaco has worked with other traditional banking services such as Deka bank operating in Frankfurt for a blockchain-based tokenization project. Other major banks that have worked with Metaco are Citibank and Societe Generale.