Deutsche Bank Pursues Digital Asset Custody Services
Deutsche Bank, one of Germany’s largest financial institutions managing $1.3 trillion in assets, is making significant move in the realm of digital assets. The bank has recently applied for a regulatory license to provide custody services for a range of digital assets, including cryptocurrencies.
The decision to venture into the custody space was revealed by David Lynne, the head of Deutsche Bank’s commercial banking unit, during a conference. Lynne emphasized the bank’s commitment to expanding its digital assets and custody business, underscoring the growing importance of this emerging sector. The application for the digital asset license has been submitted to BaFin, the German financial regulatory authority.
This strategic move aligns with Deutsche Bank’s broader strategy of seeking new avenues to enhance fee income. It mirrors similar efforts within the bank’s investment arm, DWS Group, demonstrating a synchronized approach towards digital asset-focused initiatives. The bank has been exploring digital asset custody since late 2020, indicating a shift in its stance from earlier research reports that deemed bitcoin as “too volatile” to be a reliable store of value.
This strategic move aligns with Deutsche Bank’s broader strategy of seeking new avenues to enhance fee income. It mirrors similar efforts within the bank’s investment arm, DWS Group, demonstrating a synchronized approach towards digital asset-focused initiatives. The bank has been exploring digital asset custody since late 2020, indicating a shift in its stance from earlier research reports that deemed bitcoin as “too volatile” to be a reliable store of value.
