Deutsche Bank ventures into crypto custody, files for license in Germany
Deutsche Bank aims to pioneer crypto custody in Germany, while BlackRock explores bitcoin ETF
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Deutsche Bank AG has submitted a regulatory application seeking permission to function as a custodian for cryptocurrencies in Germany, as stated by the bank on Tuesday. This action follows closely on the heels of BlackRock, a leading asset management firm, filing with the SEC to establish a spot bitcoin exchange-traded fund.
A spokesperson from Deutsche Bank's public relations department has stated that the company has applied for a crypto custody license from BaFin, which is Germany's financial supervisory authority. The bank had earlier declared, back in February 2021, that it was looking into crypto custody with the intention of providing a storage solution of institutional-grade quality that would include both hot and cold storage as well as protection backed by insurance.
The envisioned digital asset custody platform, to be introduced gradually, will eventually enable users to engage in buying and selling of digital assets through prime brokers. Furthermore, the platform will offer additional services such as taxation, valuation services, fund administration, lending, staking, voting, and more.
Deutsche Bank has shown that it is continuing to be involved in the cryptocurrency area. Notably, its asset management branch, DWS, is said to have allegedly begun conversations over the acquisition of a minority share in two crypto businesses. These businesses are Deutsche Digital Assets, which is a supplier of exchange-traded products, and trading firm Tradias.
According to a report from Bloomberg, David Lynn, the CEO who oversees the commercial banking unit of Deutsche Firm, said on Tuesday that the bank is actively expanding its digital asset and custody business. This information was shared during a conference. In February, Stefan Hoops, the CEO of DWS, expressed optimism about the prospects of the asset management division. He cited the current low prices of crypto assets as potentially presenting "interesting opportunities," and he said that he was optimistic about the asset management division's prospects.
The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash
