Deutsche WertpapierService Bank (Dwpbank), which provides securities processing services to approximately 1,200 banks in Germany, is launching a new platform called wpNex. This platform will allow all of its affiliate banks’ retail customers to access Bitcoin without requiring additional Know Your Customer (KYC) procedures. The new service will enable customers to hold crypto accounts alongside their existing bank accounts.
According to reports, Tangany, a wallet-as-a-service provider, and Tradias, the digital asset trading service of Bankhaus Scheich, will also participate in the new offering. However, customers will not hold private keys. Dwpbank CEO Heiko Beck said that the bank intends to add other cryptocurrencies, digital assets, and tokenized securities to the platform in the future.
MLP Banking was the first Dwpbank affiliate to join the wpNex platform and has already conducted a transaction on it. MLP Banking’s account and securities processing head, Paul Utzat, stated that it was a logical addition to their existing wealth management offering.
The wpNex platform will enable customers to link their crypto accounts to their euro cash accounts, enabling transactions to take place without requiring a separate payments account. This service is expected to launch in the second half of this year.
Germany has been named one of the world’s most favorable countries for crypto. In February, DZ Bank announced that it would be 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, in November, German crypto bank Nuri shut down due to the crypto bear market, despite having half a million customers. On the traditional finance side, Deutsche Bank shares plummeted in March 2023 as instability spread among European banks. Deutsche Bank asset management division DWS was reportedly in talks with Tradias regarding investment in the wpNex service.
In conclusion, Dwpbank’s wpNex platform is expected to be a game-changer for the German banking industry, as it allows retail customers to access Bitcoin and other cryptocurrencies easily. By integrating the crypto accounts with euro cash accounts, the platform will enable seamless transactions, making it an attractive option for many customers. With the increasing demand for crypto services, it is no surprise that more and more traditional financial institutions are exploring the crypto space.