Munich-based Bankhaus von der Heydt is taking over custody of digital assets for private bank M.M. Warburg & CO. The jointly developed solution makes it possible for the first time to connect the IT systems of the two credit institutions with holdings on the blockchain. The cooperation between the two institutions is intended to provide institutional investors with a point of contact for investments in digital assets.
Warburg-Bank holds the tokenized registered bond VNA1 recently issued by Vonovia in custody at Bankhaus von der Heydt. Bankhaus von der Heydt acts as a crypto custodian and delivers wallet holdings directly to Warburg Bank’s IT system via standardized interfaces. The two private banks also announced an exclusive digital asset custody agreement that goes beyond the pilot.
A business with potential: Both institutions expect a significantly increasing number of similar issues by renowned companies in the near future and would like to bring such transactions to the attention of institutional investors. “We are convinced that digital assets will become increasingly important in the future. Many market participants are already dealing intensively with the topic today, but are often still reluctant due to regulatory or even technical concerns,” says Philipp Doppelhammer, member of the Executive Board at Bankhaus von der Heydt. And Joachim Olearius, spokesman for the partners at Warburg Bank, adds: “Tokenization will significantly expand and structurally change the range of financial products and services.”
Source: CITYWIRE Germany
For more news on current collaborations such as the one between Crypto Finance AG and Avaloq, which enables Crypto Finance AG to offer its trading solutions directly to private banking clients, feel free to visit our news section.