Germany's DZ Bank AG has unveiled a blockchain-based platform for digital assets processing and custody, including Siemens' crypto bond. The move is part of the bank's anticipation of a notable shift towards distributed ledger technology (DLT) in the capital market over the next decade.
Dr. Holger Meffert, Head of Securities Services & Digital Custody at DZ Bank, has projected a significant migration towards DLT in the coming years. The bank began constructing this platform under the Electronic Securities Act (eWpG) in 2022 and has already processed and custodied the first external transaction of crypto fund shares from Bankhaus Metzler.
The bank's new platform received infrastructural support from Ripple Labs subsidiary Metaco, chosen for its Harmonize™ platform. As part of its expansion plans, DZ Bank applied for a crypto custody license from BaFin in June 2023 and is also developing direct crypto investment options for private customers.
DZ Bank's existing infrastructure allows it to participate in the European Central Bank's project testing large-volume capital market transactions. It is also planning to enable cryptocurrency purchases for institutional and private customers.
In related news, other German banks such as Commerzbank (ETR:CBKG) and DekaBank are also seeking BaFin's crypto custody licenses. In March 2023, Deutsche WertpapierService Bank (Dwpbank) launched the wpNex platform to facilitate digital assets access for 1,200 German financial institutions. Additionally, Deutsche Bank's asset management group DWS is partnering with Galaxy Digital to craft exchange-traded cryptocurrency products for the European market.
InvestingPro Insights
In light of the recent developments at DZ Bank AG, it's important to consider the financial performance and outlook of Siemens, one of the key players involved in the bank's blockchain-based platform. According to InvestingPro, Siemens (SIEGn), a prominent player in the Industrial Conglomerates industry, has a promising financial outlook. The company's net income is expected to grow this year, and it has been profitable over the last twelve months.
InvestingPro data indicates that Siemens has a market capitalization of $109,794.65M and a P/E ratio of 11.46 as of Q3 2023. The company's revenue for the last twelve months as of Q3 2023 was $83,967.7M, with a growth rate of 11.76%. Notably, Siemens has maintained dividend payments for 32 consecutive years, with a dividend yield of 3.33% as of 2023.
These InvestingPro Tips and data points suggest that Siemens' involvement in DZ Bank's blockchain initiative could be a strategic move, given the company's strong financial performance and growth potential. For more in-depth tips and data, consider exploring the InvestingPro platform, which offers an extensive range of investing insights.
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