Years ago, some of the greatest critics of cryptocurrency came from the traditional banking and finance sector. They came with such resistance that it looked like crypto was responsible for global warming and other global issues. However, years later, it looks like the much-resisted cryptocurrency has warmed its way into the hearts of many. A lot of private firms have begun to adopt the technology for different purposes, and that’s a good sign. The future looks interesting already as traditional financial institutions have begun to align with blockchain and crypto technologies.
Donner & Reuschel
In a recent development, a private bank in Hamburg, Germany, has made moves to start offering crypto custody and purchasing. Donner and Reuschel want to adopt crypto custody due to the high demand for digital assets. As part of their plans, the private bank has gone into partnership with DLC Distributed Ledger Consulting. This new partnership will help point Donner & Reuschel in the right direction with their new venture.
This is an encouraging move by the bank, considering that every moment; new people keep flocking into the crypto community. It is a strategic way to position the private bank properly as more people adopt digital assets. Furthermore, it is a big plus for the crypto community as they push for mainstream adoption.
Donner & Reuschel has about €9 billion in assets under management. The financial institution was founded in 1798 and employs more than 580 people.
Donner and Reuschel have an interest in the tokenization of assets. Simply put, asset tokenization leverages blockchain technology to convert ownership rights in various assets. This is facilitated through issuing blockchain-based tokens.
Asset tokenization is a good move to increase the bank’s chances of getting the most out of this paradigm shift. The bank will be in a good position to enjoy the disruptions that are about to rock the finance industry.
According to a spokesman of the bank, Marcus Vitt,
“We have been observing the digital assets market for some time now and are convinced of the potential of blockchain technology, also with regard to traditional securities transactions.”
In a push to embrace FinTech and the future of finance, visionaries at the bank plan to leverage digital assets. Interestingly, Donner & Reuschel is one of many banks to propose crypto trading to its customers. Bordier &Cie, a Swiss-owned private bank has also launched crypto trading services.
What Is Ahead?
It is intriguing to see that the same technology that was resented by banks is being adopted by banks. A similar thing happened to the internet when it was first introduced to the public: critics said it would fail.
Traditional banking and finance systems do not need to condemn cryptocurrency, rather they can create standards to facilitate crypto trades. At this point, there is really nothing anyone can do to stop the growth of digital assets. FinTech is evolving fast, with blockchain and cryptocurrency being the major players.
There are indications that more financial institutions look to adopt crypto-based systems. This is expected to encourage the mainstream adoption of crypto. Furthermore, it will pave the way for the creation of more FinTech innovations that will make banking, investing, and transacting much easier.
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