• Germany’s Deutsche Bank has applied for a license that will allow it to provide crypto custody services in the country.
• The move is part of its strategy to diversify its offerings and increase fee income from its corporate banking unit.
• This development reflects an increasing trend among global banks to offer crypto custody services.
Germany’s Deutsche Bank Applies for Crypto Custody Service License
Deutsche Bank, the largest banking institution in Germany, has initiated proceedings to secure a license that will allow it to offer digital asset custody services in the country. David Lynne, head of the bank’s commercial banking unit, announced this move at a recent conference as part of a more comprehensive strategy by the bank to enhance its presence in the digital asset market and provide a more diversified portfolio for their customers.
Application Submitted to Bafin
Deutsche Bank has already submitted its application to Bafin, the German securities watchdog, marking an important step in their journey towards fostering a more expansive digital asset portfolio. This effort is also supported by DWS Group, Deutsche Bank’s investment subsidiary who have been working tirelessly to increase revenue through digital assets-related offerings.
A Growing Trend
The move marks an increased interest among global banks to provide crypto custody services which reflects an industry-wide embrace of digital assets. Ripple recently acquired Metaco, a Swiss firm specializing in providing security solutions for storing and managing cryptocurrencies on behalf of institutional investors.
Increased Fee Income
Deutsche Bank aims at generating increased fee income from its corporate banking division by integrating digital assets into their suite of offerings. The bank initially suggested introducing such service back in late 2020 but did not specify any timeline for launching it until now.
Deutsche Bank’s plan to secure a license and offer crypto custody services signals an evolving attitude towards cryptocurrencies within traditional financial institutions which reflects growing acceptance amongst mainstream investors as well as regulators around the world.