In yet-more quite massive institutional-adoption news (well, potentially), Germany’s savings banks are collaborating on the idea of allowing their customers to invest in crypto.
Known as Sparkassen, there are about 400 publicly owned and operated savings banks across the vast European country, managing about US$1 trillion in assets and with more than 50 million customers.
If these institutions decide to embrace cryptocurrencies, which looks like a distinct possibility, then it’d be another case of… “probably nothing” (actually very much something) for the crypto industry.
German public banks going #crypto (maybe…)
The German Savings Banks Finance Group (Sparkassen-Finanzgruppe) is the most numerous sub-sector with 431 savings banks using the Sparkasse brand. #HODL https://t.co/BzFV5XHzvh
— Kapitalas (@Kapitalas_) December 13, 2021
According to a report from German business publication Capital, the banks will meet early next year to cast a vote on whether to proceed with the plan, which would take the form of a pilot project.
That project is reportedly actually already being developed by a payment IT services provider called S-Payment. And, if approved, it could roll out some time in 2022, allowing customers to buy, hold and sell crypto such as Bitcoin (BTC) and Ethereum (ETH) directly through their Sparkasse banking accounts.
— Reuters (@Reuters) December 13, 2021
Germany is shaping as one of the most crypto-friendly nations, having already passed a law in July that allows German institutional funds to invest up to 20 per cent of their holdings into cryptocurrencies.
And that, plus this week’s Sparkassen revelation, is no small thing for crypto’s ever-growing institutional adoption, considering the nation boasts the largest economy in Europe by GDP.
Other recent institutional-adoption crypto moves
• In partnership with the Gemini crypto exchange, and blockchain data-analysis firm Chainalysis, the Commonwealth Bank of Australia has plans underway to let its 11 million+ customers buy, hold and sell 11 different cryptocurrencies.
• The CBA is also participating in Gemini’s US$400 million metaverse-exploring funding round.
• Payments giant Visa is planning a crypto advisory service for its banking clients.
• Mastercard has teamed up with digital commerce firm Bakkt to offer cryptocurrency services to its payments partners.