German Cooperative, Savings Banks Launch Crypto Trading 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 building their own crypto trading platforms. The move by the two large banking groups has brought crypto trading to a broader customer base, Julian Schmeing, a partner at financial consultancy ZEB, said, adding that crypto is no longer a niche topic.

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 due to launch later this year and expand in stages.

Initial feedback has been positive. Markus Beerenfänger, 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 trust their main bank more than a specialized crypto trading platform, compared with 19% for those platforms.

Volksbank Raiffeisenbank Würzburg was among the first cooperative banks to introduce crypto trading. Board member Klaus Leder said hundreds of customers are already using the new service, adding that trading in a familiar environment helps build trust in the offering.

Still, concerns remain. Co-Pierre Georg, a professor at the Frankfurt School of Finance & Management, said it is troubling that savings banks and cooperative banks are opening the door to the crypto market because their traditional customer base may not fully understand the risks of digital assets. DSGV, the lobbying group for Germany’s savings banks, 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.