Sparkassen Plan October Launch for Crypto Trading App

German savings banks are planning to offer crypto trading services through their app, 'Krypto powered by Deka', with a reported launch in October. The service will be built by DekaBank and will cover the entire value chain from trading to custody. Boerse Stuttgart Digital will supply the liquidity behind it.

The selection of cryptocurrencies for the initial launch is limited to Bitcoin, Ethereum, XRP, Solana, and Polygon, based on their market capitalization. The order fee will be a flat 99 cents per transaction, with a spread set by DekaBank.

Each Sparkasse institution will decide when and if they want to enable the feature in their app, leading to a staggered launch across institutions. This means there is no nationwide start date for crypto trading through the Sparkassen app.

The custody of cryptocurrencies will be handled by DekaBank, which means users won't have direct access to their private keys. This raises concerns about risk and dependence on the provider's processes.