Why DACH-region Banks Should Offer Crypto Services
The financial sector in the DACH region (Germany, Austria and Switzerland) has long been defined by stability and trust. Today, as digital assets become more regulated and mainstream, traditional banks are exploring the option of offering crypto services in their portfolios.
The region has shown momentum: Commerzbank and DekaBank in Germany have rolled out custody platforms for institutional clients, as well as Swiss-based banks such as PostFinance and Luzerner Kantonalbank.
But what does this mean for banks in the DACH region? Many institutions are asking themselves the same question: Should we follow suit? What is the value in extending our portfolios with crypto services? And how can a Travel Rule solution provider support us along the way?
The text below addresses these questions with suggestions on how banks in this region can move forward.
The Value in Offering Crypto Services Explained
By offering crypto services, banks can open new revenue streams, retain and attract new customers.
Crypto Services Offer New Revenue Streams
By extending portfolios, banks can generate income from trading fees, custody services, staking and tokenisation. These services can also be packaged into existing investment products to create cross-selling opportunities.
Banks Can Attract New Customers with Crypto Services
Crypto’s popularity as a payment and investment tool has grown, and with that, more digitally native clients are looking for banks that can support their needs. By offering these services, banks can retain customers and attract new ones while positioning themselves as innovators.
Crypto Services Offer Regulatory Alignment and Market Credibility
Banks bring stability and regulatory oversight to a sector criticised as risky. By offering regulated crypto services, they enhance trust and differentiate themselves from unregulated exchanges.
Moreover, with frameworks like MiCA, TFR, and DORA, among others, bringing increased clarity, banks that adapt earlier can stay ahead of these regulations and offer their customers transparent and secure crypto services in line with these regulatory demands.
Download the EU Travel Rule Guide by EY and 21 Analytics
Attract Institutional Investors with Crypto Services
Institutional investors generally prefer regulated banks over crypto-native firms for custody, settlement, and payments due to the trust associated with these institutions. Additionally, offering crypto services enables banks to support treasury needs, tokenisation, and broader finance cases.
Read Swiss Banks Offering Accounts to Crypto Companies and UK and EU Banks Offering Accounts to Crypto Companies
The Right Travel Rule Provider
Due to the long-standing AML/ CTF requirements and strict supervisory authorities, most banks in the DACH region are well–versed in compliance cultures and understand what they need from a Travel Rule solution provider.
A Travel Rule solution provider must deliver more than just a technical solution; it must address the core needs of traditional financial institutions, which means intense support and guidance, ensuring the solution's seamless integration into existing banking systems.
The provider also needs evidence of proven performance, such as reliability and efficient handling of high-value and high-volume transactions while providing a smooth user experience for Compliance Teams and customers.
Most importantly, the solution must offer all this securely, in accordance with existing frameworks, such as the GDPR and DORA, as well as local supervisory requirements.
Read more about DORA in MiCA and TFR Compliance
21 Analytics Is the Go-to Partner for the DACH Region
Banks entering crypto seek a combination of technology, expertise, and trust. Success depends not only on offering a secure and compliant banking platform but also on partnering with Travel Rule solution providers who can guide banks confidently through every step of the adoption journey.
21 Analytics’ Travel Rule solution, 21 Travel Rule, meets all the requirements, making it the ideal Travel Rule solution provider for banks in the DACH region. Moreover, as a Swiss-based company, we are well-versed in the intricacies and nuances of the European regulatory framework.
Additionally, our Travel Rule solution complies with all implementations of the Travel Rule and is not limited to a single region. As the solution is on-premises, institutions maintain control over all sensitive customer data, guaranteeing maximum security in line with banking standards.
Built to handle high-volume and high-value transactions with ease, 21 Travel Rule supports all digital assets and unlimited transactions, ensuring scalability. Combined with our hands-on support when implementing 21 Travel Rule and support thereafter, 21 Analytics offers banks a secure and reliable solution to enter the ecosystem with confidence.
