ABN AMRO unit obtains MiCAR authorization, completes first blockchain OTC derivatives trade with DZ BANK

ABN AMRO's German subsidiary Hauck Aufhäuser Digital Custody received authorization under the EU Markets in Crypto-Assets Regulation (MiCAR) to provide crypto asset custody and trading services to institutional clients, BlockBeats reports. With approval from German financial regulator BaFin, the entity can safeguard and manage clients' crypto assets in Germany and plans to passport these services to other EU member states as part of ABN AMRO's European digital asset strategy; MiCAR took effect on Dec. 30, 2024. ABN AMRO and DZ BANK also completed their first cross-border over-the-counter Smart Derivative Contract (SDC) transaction, a 10-day blockchain-based derivatives trade where valuation, settlement and collateral management were automated on-chain and daily cash payments were processed via SEPA Instant. ABN AMRO said the SDC's use of pre-defined market data and interest rate curves helps mitigate collateral disputes and settlement complexity typical in traditional OTC derivatives, while DZ BANK said the transaction offers an industry blueprint for fully digital settlement of OTC derivatives and can substantially reduce counterparty risk.