Deutsche Bank AG has recently announced it is now looking to offer custody services for cryptocurrencies. While the price of crypto assets remains volatile, major institutions banking institutions are starting to take notice.
According to Bloomberg, Deutsche Bank, Germany’s largest bank, has applied with the BaFin in Germany to operate a custody service for digital assets such as cryptocurrencies.
Deutsche Bank Takes Step Into Cryptocurrencies
Deutsche Bank is a German multinational investment bank and financial services company headquartered in Frankfurt, Germany, It seems the bank has always recognized the growing mainstream interest in cryptocurrencies and has wanted a piece of the action for over two years. The bank’s corporate bank divisions first hinted at plans to introduce digital asset custody in late 2020 but never specified when it planned to start the service.
Applying for a custody license means Deutsche Bank will soon be able to offer cryptocurrency services to its clients. Getting the license means that Deutsche Bank can store cryptocurrencies for large investors, like hedge funds or other financial firms.
According to David Lynne, the bank’s head of corporate activities, the move is part of a wider strategy to increase fee income and expand income from offerings linked to digital assets.
“We’re building out our digital assets and custody business,” Lynne said. “We just put our application into the Bafin for the digital asset license.”
Total market cap holds $1 trillion as institutional interest rises | Source: Crypto Total Market Cap on TradingView.com
Other Banks Obtaining Digital Asset Licenses
Deutsche Bank is not the only financial institution looking to cater to crypto investors. Other major banks around the world have also started obtaining licenses for the custody of digital assets. This allows them to provide institutional clients exposure to cryptocurrencies through trading, storage, and other services.
According to a local German business newspaper,
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Author: Scott Matherson
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