Deutsche WertpapierService Bank (Dwpbank), a securities processing provider to about 1,200 banks in Germany, is launching a new platform called wpNex, which will offer Bitcoin to all retail customers of its member banks in the second half of this year.
The new offering includes crypto accounts that will co-exist with other bank customer accounts and, according to local media, will not require additional Know Your Customer procedures. Wallet-as-a-service provider Tangany and Bankhaus Scheich’s Tradias digital asset trading service will also join the new platform. Unlike private clients, they will not hold private keys.
Dwpbank CEO Heiko Beck has indicated that the bank plans to add other cryptocurrencies, digital assets and tokenized securities to the service in the future. MLB Banking was the first Dwpbank branch to sign up with the platform and has already transacted on it. MLP Banking’s head of account and securities processing, Paul Utzat, reports it next one:
“In our MLP client portal, it is a logical addition to the existing wealth management offering.”
Transactions can take place without having to go through a separate payment account, as crypto accounts are linked to euro money accounts.
German crypto industry is experiencing ups and downs
Germany is known as one of the most crypto-friendly countries in the world. In February, DZ Bank announced that it plans to add crypto to its wealth management service. With 8,500 branches, DZ Bank is Germany’s second largest bank by assets and acts as the central institution for a network of banking cooperatives.
In November last year, the German crypto bank Nuri had to close its doors due to the declining crypto market. At that time, the company had half a million customers. At the other end of the financial spectrum, shares of Deutsche Bank fell sharply on March 24 amid growing instability among European banks. Reportedly, Deutsche Bank’s asset management division, DWS, conversations with Tradias about possible investments in the service.