Dwpbank offers Bitcoin to 1,200 German banks

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 affiliated 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, clients do not want private keys. Dwpbank CEO Heiko Beck said 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 completed a transaction on it. MLP Banking’s head of account and securities processing, 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, allowing transactions to take place without requiring a separate payment account. This service is expected to be launched 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 cooperatives 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 financial side, Deutsche Bank shares fell in March 2023 as volatility spread among European banks. Deutsche Bank’s 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 easily access Bitcoin and other cryptocurrencies. By integrating crypto accounts with euro cash accounts, the platform will enable seamless transactions, making it an attractive option for many customers. With the growing demand for crypto services, it is no surprise that more and more traditional financial institutions are exploring the crypto space.