DekaBank launches crypto services for institutional clients while Citadel Securities prepares to enter the market.
DekaBank, an investment institution based in Frankfurt with approximately $395 billion in assets, has officially launched trading and custody services for cryptocurrencies, exclusively for institutional clients.
Last December, the bank obtained a license for crypto custody from the German Federal Financial Supervisory Authority (BaFin) and the European Central Bank (ECB) under the German Banking Act (KWG).
DekaBank is no newcomer to digital assets. The bank is a founder of SWIAT, a blockchain platform for digital securities, with investors including Standard Chartered and LBBW. Its entry follows that of Commerzbank, the first German bank to obtain a crypto custody license.
DekaBank’s services will be available exclusively to institutional investors, explicitly excluding private clients. According to Bloomberg, this decision is driven by the fact that institutional investors “possess the know-how, resources, and infrastructure to professionally manage the risks associated with crypto investments.”
On the other side of the ocean, Citadel Securities, one of the largest global market makers, is reportedly considering becoming a liquidity provider for major cryptocurrency exchanges. According to Bloomberg, the firm is evaluating exchanges like Binance, Coinbase, and Crypto.com.
Initially, Citadel plans to establish a market-making team outside of the United States. However, the extent to which Citadel Securities will become an active market maker will depend on the evolving regulatory landscape in the U.S. over the coming months.
Founded in 1990 by Ken Griffin, Citadel currently manages over $63 billion in assets, making it one of the largest hedge funds in the world. Citadel Securities, launched in 2002, currently serves over 1,600 institutional clients, including many of the world’s largest central banks and sovereign wealth funds.
