DZ Bank, one of Germany’s largest banks has decided to launch its Digital Asset Custody platform for institutional clients and as such, has unveiled its plans to leverage Ripple’s technology for the offerings.
Ripple Driving Fusion of Crypto and Finance
Recently, the traditional financial system has continued its evolutionary trends but this time, with the integration of blockchain technology. Many conventional financial institutions are showing interest in crypto and its affiliated innovations and businesses. In light of this new demand, the central institution of the Volksbanken Raiffeisenbanken cooperative financial network popularly known as DZ Bank AG has tapped into the trend.
The German bank made the groundbreaking announcement that its commercial digital asset custody offering for institutions was going live recently. Notably, the news marked a huge milestone as DZ Bank is on its way to becoming one of the first regulated banks in Germany to launch such crypto-related offerings to institutional customers.
As part of its new capacity, DZ BANK can now act as a crypto custodian for institutional clients, settling and holding crypto securities as regulated under the German Electronic Securities Act.
DZ Bank and Metaco Harmonize
Metaco which was recently acquired by Ripple Labs noted that DZ Bank is utilizing Harmonize™, its digital asset custody and orchestration platform for the offering. This partnership was first announced in February after an extensive Proof-of-Concept and diligence process that evaluated the platform was conducted. After so much scrutiny, it was decided that Ripple’s Metaco was the right choice for DZ Bank.
The alignment of Harmonize with DZ BANK’s requirements around security, scalability, and optionality for adapting fast to any changes in the future was considered in the bid to make a decision. The Ripple subsidiary noted that
“Harmonize™ has played a pivotal role in empowering the launch of DZ BANK’s institutional digital asset custody offering, which recently went live,” per details from a Press release, adding that its alignment with DEZ Bank “signifies a major milestone in the journey towards merging traditional finance with the digital asset economy,”
Ripple Labs’ Metaco acknowledged DZ Bank as one of the few institutions that has always prioritized regulatory compliance and security.