German Bank VPE Brings Cryptocurrency Trading to Institutional Investors

German bank VPE has partnered with Berlin-based fintech company ‎solarisBank to facilitate cryptocurrency trading for institutional ‎investors, like hedge and pension funds.‎

From the press release shared with FortuneZ, the Securities trading provider is regulated by Germany’s financial ‎watchdog, BaFin, and will become the first to offer such services in the ‎country.‎

VPE said the ecosystem wasn’t prepared to handle large traders a ‎couple years ago, and their customers weren’t asking for such digital assets. ‎That all changed in 2017 when the crypto-market went mainstream as an ‎asset class.‎

Unlike established financial markets, cryptocurrency trading is dominated by ‎individual investors, which is evident by almost every metric, including the sharp price swings.‎

Institutional investors and trading firms were eager to actively trade ‎these instruments following the launch of bitcoin futures contracts ‎by two of the leading futures exchanges in the US.‎ Even though the Cboe and CME futures have allowed digital currencies to ‎step into the mainstream financial system, the big players were‎ challenged by lack of institutional-grade technology to ‎support them.‎

The statement also revealed that solarisBank will offer a custodian ‎service while customers will also receive access to an individual cryptocurrency ‎wallet hosted by VPE. This will deliver stringent financial controls as well ‎as secure storage, the company said.‎

‎ Commenting on this, Katharina Strenski, Public Relations ‎Manager at VPE, said: ‎”Cryptocurrencies such as Bitcoin, Litecoin, Ethereum and others have ‎become a promising asset class in recent years. To date, trading digital ‎tokens has been restricted to crypto exchanges and online market places. ‎We are pleased to be the first German bank to offer our customers ‎cryptocurrency trading services.”

‎”Until now, institutional investors have faced high entry barriers to crypto ‎trading. Our cryptocurrency trading services offer a much more convenient ‎alternative,” Strenski added.‎

(Photo: Wikimedia Commons)

bitcoin
Bitcoin (BTC) $ 35,160.00 8.50%
ethereum
Ethereum (ETH) $ 2,420.74 13.00%
tether
Tether (USDT) $ 0.995730 0.33%
binance-coin
Binance Coin (BNB) $ 364.49 12.67%
usd-coin
USD Coin (USDC) $ 0.995294 0.46%
cardano
Cardano (ADA) $ 1.09 8.28%
solana
Solana (SOL) $ 95.88 18.93%
xrp
XRP (XRP) $ 0.591112 12.61%
terra-luna
Terra (LUNA) $ 62.42 13.24%
polkadot
Polkadot (DOT) $ 18.03 16.38%
S&P 500  ^GSPC 
$4,397.94  $84.79  (-1.89%)
Dow Jones Industrial Average  ^DJI 
$34,265.37  $450.02  (-1.30%)
NASDAQ Composite  ^IXIC 
$13,768.92  $385.10  (-2.72%)
Russell 2000  ^RUT 
$1,987.92  $36.12  (-1.78%)
Crude Oil Mar 22  F*CL.NYM 
$84.83  $0.7200  (-0.84%)
   
$0.0000  $0.0000  (0.00%)