The adoption of cryptocurrencies in the traditional banking sector continues to spread around the world and has now arrived at a bank in Hamburg, Germany. Donner & Reuschel intends to start up its cryptographic activities and to offer corresponding storage services.

The bank will also study other blockchain projects

According to local magazine Asscompact, the Hamburg-based private bank will offer services in the purchase and custody of cryptocurrencies. Although Donner & Reuschel has not given an exact date for the launch, they hope to deliver the products as soon as possible.

Marcus Witt, a spokesman for the bank, stated that the decision to get into the cryptocurrency sector was due to the growing interest in digital assets:

We have been observing the digital asset market for some time and are convinced of the potential of blockchain technology, including for classic securities transactions.

Donner & Reuschel is a subsidiary of the Signal Iduna Group, which offers insurance and financial services in Dortmund. Furthermore, Witt explained that the high demand for cryptocurrency storage services in Germany is a trend and that the bank does not want to be left behind by this trend.

A spokesman for the bank added:

Blockchain technology will bring about the biggest structural change in the financial sector that I have seen so far in my 20-year banking career.

The German bank, which was founded in 1798 and has subsidiaries in Luxembourg, also hinted that it was exploring other blockchain projects. The local magazine even noted that Donner & Reuschel is already analyzing some projects, such as those related to tokenization.

Latest regulators on crypto-currencies in Germany

Germany has seen some movement in the cryptosphere in recent months. Synbiotic SE, a German-listed company on the Frankfurt Stock Exchange and Xetra, recently announced that it is hedging against bitcoin (BTC) to protect against the currency’s devaluation.

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

According to the country’s finance ministry, the new law relaxes rules that require issuers and holders of securities to document transactions with paper certificates.

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

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