Germany’s largest banking group, Sparkassen, is entering the crypto market.
The group is moving to allow millions of customers to trade Bitcoin and other digital assets directly through their banking app, according to a local report.
Notably, the decision marks a major shift in strategy by the German Savings Banks Association (DSGV), which had previously ruled out offering crypto services in 2021.
The new crypto trading service will be provided by DekaBank, the central fund manager owned by around 350 savings banks. Access will be integrated into the Sparkasse app, with a launch expected within the next 12 months.
MiCAR Regulation Paves the Way
Notably, the report stated that the turnaround follows the European Union’s implementation of the Markets in Crypto-Assets Regulation (MiCAR). This regulation establishes a unified legal framework for crypto assets across member states. DSGV cited MiCAR’s regulatory clarity and rising customer demand as key factors in its decision.
“Therefore, we will enable interested self-determinants to access DekaBank’s crypto offering via the Sparkasse app in the future,” the DSGV said in a statement.
Self-Service Model, Strong Risk Warning
Unlike traditional investment products, the crypto offering will be strictly non-advisory. Customers will receive clear warnings about the volatility and risk of total loss associated with crypto assets like Bitcoin.
Meanwhile, the product is being marketed toward “self-determined” investors, with no in-branch advice or portfolio guidance. This mirrors moves by other institutions aiming to provide access while avoiding legal exposure in an unpredictable market.
Competition Heats Up in German Crypto Banking
The Sparkassen move follows similar initiatives from competitors. DZ Bank, the central institution for Germany’s cooperative banks, is running a pilot project with the Stuttgart Stock Exchange to offer crypto trading. The full rollout is for later this year.
Meanwhile, Neobrokers such as Trade Republic have already captured a significant share of the retail crypto market. This has prompted legacy banks to modernize their offerings to keep up.
Bitcoin in the Spotlight Again
Overall, the moves by these German firms align with the growing interest in Bitcoin among both institutional and retail investors. The leading cryptocurrency reached a record high of $111,970 in late May amid strong demand. In particular, over 200 companies announced that they include BTC in their corporate treasuries.
