Germany’s Stronghold in Blockchain Funding: Defying Global Trends

Germany has bucked the current global trend of declining performance in the blockchain market, achieving an unprecedented feat in venture capital funding share in 2023. In a report published by Crypto Valley Venture Capital [CVVC] titled “The German Blockchain Report 2023, “Germany’s blockchain sector has landed a total of $355 million in investments through 34 deals. This represents a noteworthy 3% year-over-year [YoY] surge in funding for the Western European nation, as reported by CVVC.

What sets this achievement apart is that the nation has not only maintained its funding growth but has also garnered its highest-ever share of global blockchain funding. The country has attracted a substantial 2.4% of the world’s blockchain funding and engaged in 2.5% of global blockchain deals. This marks a substantial upturn compared to 2022 figures, which stood at 0.9% in global funding and 1.9% in global deals, showcasing Germany’s remarkable ascent in both aspects.

In the context of Europe, the nation has also cemented its position as a leading beneficiary of blockchain funding within the region. The report highlights that it has captured a significant share, securing 9.4% of blockchain funding based in Europe and contributing to 10.3% of all European blockchain deals.

Remarkably, Germany’s financial success in the blockchain sector comes amidst a backdrop of declining venture capital funding across all continents. The report cites the gradual year-over-year declines in funding across continents, with a striking 62% drop in funding and a 44% decrease in deals compared to the preceding four-quarter period on a global scale.

Meanwhile, Deutsche Bank, Germany’s leading financial service provider that boasts nearly one and a half trillion dollars in assets, has launched custody services for its clients’ cryptos. The 153-year-old banking giant joins the ranks of banks like Standard Chartered, BNY Mellon, and Societe Generale, all of which offer crypto custody solutions.

Germany’s Deutsche Bank Take on Crypto

Deutsche Bank has teamed up with Swiss crypto firm Taurus to provide crypto custody services and address tokenized assets, as per a press release.

In summary, Germany’s exceptional performance in blockchain funding stands out as a beacon of success amid a global decline in venture capital investment. This accomplishment is a testament to the country’s resilience as well its growing significance in the world of blockchain and cryptocurrency, even as the industry grapples with evolving narratives and challenges.

Lipika Deka: Lipika is a crypto-journalist at TWJ. A graduate in economics and finance, she has a keen interest in the political and socio-economic facets of blockchain technology and the cryptocurrency industry.