Biggest banking group in Germany will now allow millions of customers trade Bitcoin through its banking app

Germany’s largest banking group, Sparkassen, is entering the crypto market in a landmark move, allowing millions of customers to trade Bitcoin and other digital assets directly through its banking app.

The move goes beyond a simple product launch. In a country where traditional banking has long shaped consumer finance, Sparkassen’s decision reflects a broader institutional shift toward recognizing digital assets as a legitimate part of the financial future.

The launch, set for the next 12 months, is a major policy shift of the German Savings Banks Association (DSGV), which had decided against offering crypto services a few years ago.

In 2023, Sparkassen’s internal committee dismissed crypto as too volatile, risky, and far outside traditional banking’s comfort zone. Today, that same institution is preparing to onboard millions of Germans into Bitcoin and other digital assets. 

DekaBank, the central securities service provider owned by around 350 Sparkassen, will facilitate the new service.

MiCAR clarity and customer demand push Sparkassen into crypto

The shift comes on the heels of the European Union’s implementation of the Markets in Crypto-Assets Regulation (MiCAR), which provides a harmonized regulatory framework for crypto assets across EU member states. DSGV cited MiCAR’s regulatory clarity, competitive pressure, and undeniable client demand seem to have created forces too strong for even Europe’s most conservative banks to ignore.

“Therefore, we will enable interested self-determinants to access DekaBank’s crypto offering via the Sparkasse app in the future,” the association said in an official statement.

The service is designed as a self-service product and will not include investment advice or in-branch support. Customers will receive prominent warnings about the high volatility and potential for total loss inherent in crypto investments like Bitcoin. 

The product targets “self-determined” investors seeking direct access to digital assets.

This cautious approach reflects broader industry trends, with many legacy institutions offering access to crypto while steering clear of advisory liability in an evolving regulatory environment.

The timing closely tracks the turning point that came with the EU’s Markets in Crypto-Assets regulation, which provided a long-awaited rulebook for banks entering the space. No longer forced to navigate a gray area, Sparkassen could finally build a compliant framework backed by DekaBank’s securities infrastructure.

Still, regulation alone doesn’t explain the urgency. Matthias Dießl, chairman of the Bavarian Savings Banks Association, hinted at the real driver in an April interview with Bloomberg: “Our clients are asking for this.” With rival German cooperative banks like Volksbanken already racing toward crypto services, Sparkassen risked losing relevance if it did not act accordingly.

Rising Bitcoin demand and fintech pressure drive legacy banks to adapt

The Sparkassen move into the crypto market follows similar moves by its competitors. The central bank for Germany’s cooperatives, DZ Bank, is partnering with the Stuttgart Stock Exchange over a crypto trading pilot that’s to expand this year.

In the meantime, fintech providers such as Trade Republic have built up considerable scale to serve retail crypto investors and are putting pressure on traditional banks to innovate.

The timing also coincides with a resurgence of interest in Bitcoin, which hit an all-time high of $111,970 in late May. Institutional adoption has accelerated, with more than 200 companies now holding Bitcoin in their corporate treasuries.

Philippe Laffont, the founder of hedge fund Coatue Management, said he added Bitcoin to his firm’s Fantastic 40 list, a collection of investments it sees as major winners through 2030.

That’s partly because Laffont believes the total market cap of the world’s biggest crypto could rise to as much as $5 trillion one day. That implies Bitcoin’s total value could rise 134% from a market cap of around $2.1 trillion.

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