The second largest bank in Germany will provide crypto custody services to institutions

DZ Bank, the second-largest German bank by assets, will soon provide custody services for digital assets.

The BaFin-regulated financial institution and custody provider has partnered with the Swiss company Metaco and the orchestration platform Harmonize for its upcoming digital currency service to institutional customers.

Harmonize, according to the official news release, is intended to provide a flexible governance architecture and customized risk and compliance controls “with complete segregation of numerous business units and customers, ensuring isolation of rules, users, accounts, and assets.”

In terms of the security, scalability, and future requirements of our digital asset custody initiative for institutional clients, beginning with crypto securities in accordance with the German eWpG, Metaco Harmonize has proven to be a robust, purpose-built solution that is compatible with our intended operating model.

Christopeit noted that DZ Bank chose the platform after a thorough proof-of-concept and due diligence process and that it has proved to be an effective option for the lender. DZ Bank is one of Germany’s top custodians, with €297 billion in assets under custody by the end of 2022.

This is not the first time that Metaco has partnered with a notable German player. Last month, the digital asset service provider collaborated with DekaBank, located in Frankfurt, to build a blockchain-based tokenization platform.

Citibank and Societe Generale are among the other big financial institutions that have partnered with Metaco in the last year to provide institutional customers access to digital asset offerings.

Also Read: The IMF Urges Joint Effort Because Of Concern That Crypto Might Damage The Global Monetary System