Deutsche WertpapierService Bank to Offer Bitcoin to Affiliates’ Retail Customers in New Platform
Deutsche WertpapierService Bank (Dwpbank), a securities processor offering securities processing services to around 1,200 banks in Germany, is launching a new platform, wpNex, to enable Bitcoin trading to all of its affiliates' retail customers in the second half of this year.
Dwpbank has partnered with Tangany, a wallet-as-a-service provider, and Tradias, Bankhaus Scheich’s digital asset trading service, to provide the new offering.
The new service will allow customers to have crypto accounts alongside their others. It will not require additional Know Your Customer procedures. In addition, Dwpbank CEO Heiko Beck said that the bank would add other cryptocurrencies, digital assets, and tokenized securities to the service in the future.
The new service will enable retail customers to transact without going through a separate payments account, as crypto accounts are linked to euro cash accounts. This development comes as Germany has been named one of the world’s most favorable countries for crypto.
DZ Bank announced in February that it was adding crypto to its asset management service. DZ Bank is Germany’s second-largest bank by assets and a central institution for a network of bank coops with 8,500 branch offices.
However, German crypto bank Nuri closed down in November under the stress of the crypto bear market. It had half a million customers. On the traditional finance side, Deutsche Bank shares plummeted on March 24 as instability spread among European banks. Deutsche Bank asset management division DWS reportedly talked with Tradias on investment in the service.
Dwpbank’s wpNex platform is expected to provide its affiliates with seamless integration with their current offerings. MLP Banking was the first Dwpbank affiliate to sign on to the platform and has already performed a transaction on it.
MLP Banking’s account and securities processing head, Paul Utzat, stated that “in our MLP customer portal, it is a logical addition to the existing wealth management offering.”