German Banks Embrace Cryptocurrency: A Shift Towards Mainstream Adoption

German banks are gradually entering the cryptocurrency industry, overcoming their initial reluctance. Previously, foreign institutions and fintech companies dominated the market, while German banks offered indirect cryptocurrency investment options. However, the landscape is changing, and several banks are actively working on solutions to provide direct access to cryptocurrencies.

In March 2023, Deutsche WertpapierServiceBank (Dwpbank) launched the wpNex crypto trading platform, granting access to the digital asset industry for 1,200 banks in Germany. They are also in discussions with potential partners, including DZ Bank. DWS, majority-owned by Deutsche Bank, is collaborating with Galaxy Digital to offer exchange-traded products of cryptocurrencies in Europe.

Commerzbank and DekaBank are seeking crypto custody licenses from Germany's financial watchdog, with a focus on institutional clients. DekaBank is developing its own tokenization platform using blockchain technology. Deutsche Bank is primarily providing crypto custody solutions for large institutional clients.

Regional banks like Volksbanken and Raiffeisenbanken, as well as private banks such as Bankhaus Scheich and Bankhaus von der Heydt, have also made progress in the crypto scene. Neobanks like N26 and online brokers such as Trade Republic and Revolut are offering crypto trading to retail customers.

Overall, while large German banks cater more to institutional investors, the market is gradually expanding to include retail customers through alternative banking providers and online brokers.