Germany’s Bankhaus to become a one-stop shop for crypto

Fireblocks has been selected to support Bankhaus von der Heydt – a German-based, privately-owned bank offering traditional and digital asset banking, and fund services.

Bankhaus will leverage Fireblocks’ advanced custody technology in combination with the Fireblocks Network to expand digital asset and crypto service offerings to its customer base.

Philipp Doppelhammer, Managing Director of Bankhaus von der Heydt, told Coin Rivet Fireblocks allowed them to take one step closer to becoming a one-stop shop.

“It’s a secure and easy way to use the platform to develop complex operational workflows such as moving between asset trading and custody, staking assets in custody or even direct integration with lending protocols to extend our service portfolio,” he said.

Doppelhammer explained Germany was at the forefront in Europe when it comes to enabling crypto services for institutions and professional market participants.

“This became visible when Germany introduced an update to their banking law in 2019 which introduced crypto custody as a new financial service,” he said.

“On the other hand, a new law was just passed this year that allows crypto securities on the German market and thus supports their wider acceptance.

“In summary, from our point of view, German regulators are very open-minded towards crypto assets.

“We are also looking forward to the MiCA, which will regulate the handling of crypto assets across Europe and is expected to come into force in 2022,” he disclosed.

Doppelhammer added that, generally, income from cryptocurrencies was tax-free in Germany after a holding period of one year.

“However, if rewards are generated with cryptocurrencies, for example through lending or staking, then returns from cryptocurrencies are only tax-free after a holding period of 10 years,” he explained.

“Security tokens are treated similarly to standard securities for tax purposes.”

He also revealed that the Bank specialises in providing white label services to clients, including crypto funds and is currently servicing some customers who plan to launch a crypto fund with the Bank acting as a service provider.

However, he noted that BVDH itself was currently not planning to launch any crypto fund.

Securitisation, he affirmed, usually depends on the use case.

“We are able to implement a range of solutions, that includes indirect structures, securitisation trackers, or vehicles that track crypto indices,” he added.

Bankhaus to ensure highest security level

Michael Shaulov, CEO of Fireblocks said supporting Bankhaus von der Heydt marked a key milestone in its mission to bridge the gap between digital asset banking and traditional finance.

“As a pioneer in Germany for over 250 years, Bankhaus is seen as a trusted partner for innovative financial market solutions and we are proud to work alongside them to revolutionise the financial sector and work towards bringing every single banking service to the blockchain space, safely,” he said.

Launched in 1754, Bankhaus is one of the first banks in Germany to offer blockchain services such as cryptocurrency trading, and custody services for financial institutions.

Its product suite consists of secure custody of crypto assets, solutions for tokenisation, efficient payment transactions, and provides regulatory secure market access.