Deutsche Bank Makes Regulatory Move to Operate as Crypto Custodian in Germany, Following Recent Growth in Digital Asset Ventures
Deutsche Bank AG, a prominent banking giant, has submitted an application for regulatory approval to establish itself as a crypto custodian within Germany, according to the bank’s announcement on Tuesday. This development comes shortly after BlackRock, a renowned asset management giant, filed with the SEC to launch a spot bitcoin ETF.
Confirming the application for a BaFin license for crypto custody, a spokesperson for Deutsche Bank stated that they are actively pursuing avenues to offer an institutional-grade hot/cold storage solution for digital assets, fortified with insurance-grade protection. The bank initially expressed its interest in cryptocurrency custody back in February 2021.
Deutsche Bank envisions the digital asset custody platform to be rolled out gradually, eventually allowing users to engage in digital asset trading through prime brokers. Moreover, the platform aims to provide additional services such as taxation, valuation services, fund administration, lending, staking, voting, and more.
The bank has been actively involved in the crypto space, as evidenced by recent reports of its asset management group, DWS, engaging in discussions to acquire a minority stake in two crypto companies: Deutsche Digital Assets, an exchange-traded products provider, and trading firm Tradias.
During a conference, David Lynn, responsible for Deutsche Bank’s commercial banking unit, mentioned their ongoing efforts to expand their digital asset and custody business, as reported by Bloomberg.
Earlier in February, DWS CEO Stefan Hoops expressed optimism about the asset management division, citing the potential opportunities arising from the current lower crypto prices.
