In the traditional banking industry, the use of cryptocurrency has been spreading widely and has reached a bank in Hamburg, Germany. Donner & Reuschel will begin to get involved in the cryptocurrency business by providing related custodial services.

The bank will also explore more blockchain projects

According to the local magazine Asscompact, the Hamburg-based private bank will provide cryptocurrency purchase and custody services. Although Donner & Reuschel did not provide an exact release date, they hope to deliver the product “as soon as possible.”

Marcus Vitt, a spokesperson for the bank, said that the decision to enter the cryptocurrency business was related to the surge in interest in digital assets:

We have been observing the digital asset market for a long time and are convinced that the potential of blockchain technology also involves classic securities trading.

Donner & Reuschel is a subsidiary of Signal Iduna, a group that provides insurance and financial services in Dortmund. In addition, Vitt stated that there is a high demand for cryptocurrency custody services in Germany, and the bank does not want to fall behind this trend.

A spokesperson for the bank added:

Blockchain technology will cause the biggest structural change in the financial industry, which is what I have experienced so far in my 20-year banking career.

The German bank was founded in 1798, has a subsidiary in Luxembourg, and hinted that it will further explore blockchain projects. In fact, local magazines pointed out that Donner & Reuschel are already analyzing certain projects, such as those related to tokenization.

The latest trends in encryption regulations in Germany

In the past few months, Germany has witnessed some initiatives in its encryption field. Synbiotic SE, a German listed company listed on the Frankfurt Stock Exchange and Xetra, recently announced a hedge against Bitcoin (BTC) to protect itself from currency depreciation.

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In terms of regulation, the German government passed a new legislation in December 2020 to include fully electronic securities as part of the country’s broader blockchain strategy.

The country’s Ministry of Finance said the new law relaxes the rules that force issuers and security holders to record transactions with paper vouchers.

What do you think of this announcement in Germany? Let us know in the comments section below.

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