DekaBank will provide cryptocurrency trading to its institutional client base through a partnership with Börse Stuttgart Digital, the regulated brokerage. The bank provides securities services and asset management (€400m+) for Germany’s government owned savings banks, which are also its shareholders.

Börse Stuttgart Digital provides similar services to DZ Bank, which in turn serves more than 700 community banks. DZ Bank started piloting the cryto offering for retail clients late last year.

“Partnering with DekaBank to offer crypto trading to its institutional clients underscores our commitment to providing financial institutions across Europe with secure and fully regulated infrastructure solutions,” said Dr. Matthias Voelkel, CEO of Boerse Stuttgart Group.

Börse Stuttgart additionally provides custody services for DZ Bank, but DekaBank secured its own crypto custody license last year.

Meanwhile, DekaBank is the most active German bank when it comes to digital securities, and to a lesser extent with what Germany calls ‘crypto securities’ – digital securities issued on a public blockchain. The bank also has a license as a crypto securities registrar.

It is the founder of the SWIAT blockchain network for digital securities, in which Standard Chartered and LBBW are also investors. During the recent ECB DLT settlement trials, SWIAT was involved with eight transactions, including the issuance of a €300 million corporate bond by Siemens and a €100m bond from LBBW’s Berlin Hyp.

Other German banks to launch services targeting corporate clients include Commerzbank which partnered Deutsche Börse subsidiary Crypto Finance and LBBW, which is working with crypto exchange Bitpanda.

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Bank of America (BofA), the second largest bank in the United States, has hinted at plans to roll out its USD-backed stablecoin. 

Brian Moynihan, the CEO of BofA, made the disclosure in an interview with David Rubenstein at the Economic Club of Washington D.C. During the interview, Moynihan emphasized that the stablecoin business is imminent and poised to go mainstream soon. 

He referred to stablecoins as digital assets backed by fiat currencies, like the U.S. dollar. Notably, Moynihan suggested that these digital assets can function like a money market fund or bank account. 

With Moynihan expecting stablecoins to go mainstream, he revealed that the second-largest U.S. bank may introduce a stablecoin, referred to as the BofA token, tied to U.S. dollar deposit accounts. However, he noted that the bank would only launch the digital asset if the U.S. government legalized stablecoins. 

Ongoing Efforts to Regulate USD Stablecoins 

It bears mentioning that the United States government is pushing to pass stablecoin legislation. Last year, Rep. French Hill (R-AR) disclosed that the United States Congress will prioritize crypto legislation, including those relating to stablecoins, in 2025. 

Due to its aggressive stance toward crypto, the previous administration sabotaged efforts to pass stablecoin regulation. However, crypto enthusiasts are optimistic that the U.S. will soon welcome favorable legislation for stablecoins. 

This speculation is driven by Donald Trump’s executive order for the digital asset markets. The order mandates a presidential committee to establish crypto regulation at the federal level. 

Specifically, the order pushes for the sovereignty of the U.S. dollars by promoting the growth and development of dollar-backed stablecoins globally. 

BofA Faces Stiff Competition From Established Stablecoin Issuers 

Should the government establish the necessary regulation, BofA may launch its own dollar-backed stablecoin. However, the bank faces stern competition from established brands like Tether (USDT) and USD Coin (USDC).

Currently, stablecoins USDT and USDC have valuations of $142.02 billion and $56.25 billion, respectively. They account for 86.55% of the $229.06 billion global stablecoin market valuation. 

Other dominant USD-backed stablecoins include Ethena USDe (USDe), Dai (DAI), First Digital USD (FDUSD), and PayPal USD (PYUSD). These stablecoins are worth $5.87 billion, $5.36 billion, $2.13 billion, and $703.38 million, respectively. 

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