DekaBank introduces cryptocurrency services for institutional clients, while Citadel Securities plans to enter the industry.
DekaBank, a Frankfurt-based financial firm with about $395 billion in assets, has officially introduced cryptocurrency trading and custody services solely for institutional clients.
Last December, the German Federal Financial Supervisory Authority (BaFin) and the European Central Bank (ECB) granted the bank a crypto custody license under the German Banking Act (KWG).
DekaBank is not new to digital assets. The bank co-founded SWIAT, a blockchain platform for digital assets, alongside Standard Chartered and LBBW as investors. Its admission follows that of Commerzbank, the first German bank to get a cryptocurrency custody license.
DekaBank’s services will be provided only to institutional investors, with individual clients specifically excluded. According to Bloomberg, this decision is based on the idea that institutional investors “have the know-how, resources, and infrastructure to competently handle the risks involved with cryptocurrency investments.”
Citadel Securities, one of the world’s top market makers, is looking into becoming a liquidity provider for major cryptocurrency exchanges. According to Bloomberg, the company is reviewing exchanges like as Binance, Coinbase, and Crypto.com.
Citadel intends to start a marketmaking team outside of the United States. However, the extent to which Citadel Securities will become an active market maker will be determined by the emerging regulatory situation in the United States over the next few months.
Citadel, founded in 1990 by Ken Griffin, presently manages more than $63 billion in assets, making it one of the world’s largest hedge funds. Citadel Securities, founded in 2002, now serves more than 1,600 institutional clients, including several of the world’s major central banks and sovereign wealth funds.
Also Read: Bybit exchange covers Bitget’s post-hack debt of 40,000 ETH
