German Regional Banks Expand Crypto Trading Services for Retail Clients

Germany’s cooperative banks and savings banks are rolling out cryptocurrency trading services for retail customers.

Bloomberg reported on July 4 that Germany’s cooperative banking group and savings bank group, which together serve tens of millions of customers, are each developing their own crypto trading platforms. “The entry of these two large banking groups has brought crypto trading to a broader client base,” said Julian Schmieg, a partner at financial consultancy ZEB. “Crypto is no longer used by just a small group.”

Some of Germany’s roughly 650 cooperative banks already offer trading in Bitcoin, Ether, Litecoin and Cardano through a platform developed by DZ Bank. For the country’s roughly 340 savings banks, DekaBank is developing a separate platform that is set to launch later this year before being expanded gradually.

Early feedback has been positive. Markus Behrenpfennig, a product specialist at DZ Bank, said he expects a triple-digit number of banks to adopt the service. In a survey by crypto infrastructure firm Boerse Stuttgart Digital, about 38% of German respondents said they trusted their primary bank more than a specialized crypto trading platform, compared with 19% for the latter.

Volksbank Raiffeisenbank Wuerzburg was among the first cooperative banks to introduce crypto trading. Board member Klaus Leder said several hundred customers are already using the new service. Trading in a familiar environment helps build trust in the offering.

Concerns remain. Professor Kofner Georg at the Frankfurt School of Finance & Management said it was troubling that savings banks and cooperative banks were opening the door to the crypto market. Their traditional customer base may not fully understand the risks tied to digital assets. DSGV, the German Savings Banks Association, also said crypto trading is intended for self-directed investors and described it as a highly speculative form of investment that carries the risk of a total loss of principal.