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105 year old German bank DekaBank plans to launch a blockchain-based tokenization platform in collaboration with digital asset company Metaco.
DekaBank targets the release of its blockchain platform around 2024, while infrastructure is expected to be ready by 2023, DekaBank digital asset stewardship executive Andreas Sack told Cointelegraph.
“The infrastructure of the tokenization platform will be ready in the future, and it will launch the first viable minimum product in our crypto storage solution,” said Sack. He added that the first test transactions of the tokenization platform will most likely be carried out this year.
DekaBank’s upcoming blockchain platform was developed in collaboration with digital asset management system Metaco Harmonize. The bank formally announced a partnership with Metaco on January 31, planning to implement Harmonize as a core platform for “institutional digital asset offerings”.
According to Sack, the upcoming offering will involve tokenizing assets such as bonds, stocks and funds to enable the new token economy. “Metaco is key to this economy because it is our ultimate management solution for assets pegged to different blockchains,” he said.
The executive noted that many blockchains are used for tokenization, including the Ethereum and Polygon networks. “It is not yet clear whether there is one blockchain that will become the standard,” he added.
Related: HSBC needs someone to lead its tokenization efforts
Sack emphasized that DekaBank has no plans to offer trading in cryptocurrencies such as Bitcoin (BTC) as part of its partnership with Metaco. That’s because DekaBank focuses on regulated products, according to Germany’s Electronic Securities Act, he said, adding:
“Cryptocurrencies can be traded worldwide, are more regulated in some parts of the world, and less regulated in others. The implications that can arise as a result of this disparity are potentially very large and can pose very high risks.”
The new details about DekaBank’s upcoming digital asset platform come amidst several major local banks moving into the cryptocurrency industry. DWS Group, the asset management arm of Deutsche Bank — one of the world’s leading financial service providers — is reportedly looking to invest in two German crypto firms, including Deutsche Digital Assets and Tradias.
According to several rankings, Germany is the most profitable crypto economy in the world in 2022, based on factors such as profitable crypto prospects, clear crypto tax rules and transparent regulatory communications. German financial authority BaFin has issued multiple licenses for crypto exchanges, including companies such as Coinbase and Bitpanda.
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