Deutsche Bank, one of Germany’s largest asset managers with a value of $1.4 trillion, has made a significant move in the crypto space. The bank has applied for a regulatory license that would allow it to operate a custody service for digital assets such as cryptocurrencies.
This latest development is part of Deutsche Bank’s strategy to increase its fee income and expand its offerings in the digital asset sector. The bank’s investment arm, DWS Group, has also been focusing on generating revenue from digital asset-related products.
David Lynne, Global Head of Deutsche Bank’s Corporate Bank, revealed the bank’s plans at a recent conference, stating, “We’re building out our digital assets and custody business. We just put our application into the BaFin for the digital asset license.” BaFin is the regulatory authority responsible for overseeing securities in Germany.
Deutsche Bank’s Corporate Bank serves corporate clients, financial institutions, investors, and issuers, acting as the bank’s commercial banking unit.
The move by Deutsche Bank follows a series of similar developments in the crypto custody space. Ripple, a blockchain payments firm, recently acquired Swiss custody firm Metaco for $250 million to expand its global presence and enhance its service offerings.
Standard Chartered’s Zodia Custody, a crypto asset custodian, also secured $36 million in funding, led by Japan’s SBI Holdings. Additionally, Nasdaq, a prominent exchange group, is preparing to launch its own crypto custody services, aiming to provide secure storage solutions for digital assets. Nasdaq has initiated the process of obtaining the necessary technical infrastructure and regulatory approvals, including an application for a limited-purpose trust company charter from the New York Department of Financial Services.
Other major players in the financial industry, including BNY Mellon, Fidelity, and BNP Paribas, are also actively involved in the crypto safekeeping service sector.
Deutsche Bank’s move into crypto custody highlights the increasing recognition and adoption of digital assets by traditional financial institutions. As more players enter the market, the infrastructure supporting cryptocurrencies and other digital assets continues to expand, creating new opportunities and increasing accessibility for investors and institutions alike.