German Dwpbank To Offer Crypto Training To Affiliates

Updated: 25 March 2023

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Deutsche WertpapierService Bank (dwpbank) is set to launch a new platform that will enable its 1,200 affiliate banks to trade Bitcoin. The securities processor aims to offer its affiliates a seamless integration with their current offerings, with plans to add more digital assets to the platform.

Dwpbank to Launch Bitcoin Service for Retail Customers through New Platform wpNex

Dwpbank, a German bank that provides securities processing to around 1,200 banks, is launching a new platform called wpNex. This platform will offer Bitcoin (BTC) to retail customers of its affiliates in the second half of 2023. The new service will allow customers to manage their crypto and other accounts and will not require additional Know Your Customer procedures.

Great news for #BTC adoption and access in Germany

To offer this service, DwpBank will partner with wallet-as-a-service provider Tangany and Bankhaus Scheich’s Tradias digital asset trading service. Retail customers will not be required to hold private keys. Dwpbank CEO Heiko Beck stated the bank plans to add more cryptocurrencies, digital assets, and tokenized securities to the service.

According to a statement by Paul Utzat, MLP Banking’s head of account and securities processing, MLP Banking, the first Dwpbank affiliate to sign up for the platform, has already conducted a transaction on it. Utzat stated that adding the platform to their existing wealth management offering was a logical step for their MLP customer portal.

Transactions can occur between crypto and euro cash accounts with no separate payment account. Germany has been identified as one of the most favorable countries for crypto, with DZ Bank announcing in February that it would add crypto to its asset management service. DZ Bank, which has 8,500 branch offices and is Germany’s second-largest bank by assets, is a central institution for a network of bank co-ops.

Germany Shows Increasing Interest in Crypto, with 44% Motivated to Invest

According to a report by KuCoin, the wealthiest country in Europe is showing an increasing interest in crypto. The report shared some positive statistics regarding the future of crypto in Germany, with 44% of Germans expressing their motivation to invest in cryptocurrencies and be a part of “the future of finance.” Furthermore, over a third (37%) of German crypto investors have been trading cryptocurrencies for over a year. Germany has seen an impressive growth in crypto.

Although there is a high demand for cryptocurrencies among Germans, the country currently lacks specific regulations governing digital money use. While Germany was the first country to acknowledge that Bitcoins are “units of value” and could be classified as a “financial instrument,” according to the report, the local regulator has only had limited success in regulating crypto so far.

Nonetheless, Germany was the first country globally to adopt a blockchain strategy. Interestingly, the country’s political stance on cryptocurrencies was brought up during the recent parliamentary elections.

The report suggests that other EU countries can look to Germany as a role model, as their population is more open to long-term investments. Germany, the largest country in the EU with a cautious approach to financial assets, has a unique role. The report also highlights that while 69% of crypto investors are men, women make up 53% of the crypto-curious, showing their interest in the future of finance over traditional finance. Younger generations have a self-directed and equity-focused investment style and are more aware of inflation risks.

However, the regulatory environment remains uncertain, as BaFin, responsible for regulating crypto in Germany, continues to warn about the risks. Despite this, they have given the green light to Neobank N26 to launch crypto trading in 2022.