Investing

Deutsche Bank Applied for a License to Offer Digital Asset Custody Services: Report

Tim Fries

Published: June 20, 2023 10:23 pm

Deutsche Bank has applied with German regulators to register as a digital asset custody service provider, Bloomberg reported on Tuesday. The action comes just several days after BlackRock applied to launch a spot Bitcoin exchange-traded fund (ETF) in the US and would see Germany’s largest bank, with more than $1 trillion in assets, enter the crypto custody business.

Deutsche Bank Applies for Crypto Custody Services

According to Bloomberg, Deutsche Bank, the largest bank in Germany by far, is seeking approval from regulators to offer custody services for digital assets like cryptocurrencies. By foraying into digital asset custody services, Deutsche aims to establish its digital assets and custody business, said David Lynne, head of the company’s commercial banking unit.

The move comes as part of the lender’s broader plan to boost its income fees at its corporate banking business, Lynne added. In addition, it also follows recent by Deutsche Bank’s investment arm, DWS Group, which announced a deal earlier this year to drive income from solutions tied to digital assets.

Deutsche announced its push into digital assets and crypto custody nearly three years after its corporate bank first hinted at such plans. However, since then, the European lender has never provided specific details about when it plans to launch custody services until now.

More TradFi Titans Enter Crypto Space

Traditional finance (TradFi) institutions such as banks and asset management firms increasingly recognize the potential of digital assets and have started exploring this nascent market. This expansion into the crypto space signifies a significant shift in the financial landscape and highlights the growing acceptance and mainstream adoption of these innovative technologies.

Last week, BlackRock, the world’s biggest asset manager, took steps to roll out a spot Bitcoin ETF, a type of investment product that has been so far opposed by the US Securities and Exchange Commission (SEC) in the US.  However, if approved, it could substantially drive mainstream adoption of cryptocurrencies as it would allow investors to access these assets through one of the biggest Wall Street giants.

BlackRock’s application came amid a critical period for cryptocurrencies in the US as the SEC and other regulators continue to crack down on the industry. Earlier this month, the securities regulator filed two lawsuits against Binance and Coinbase, accusing them of several wrongdoings. Meanwhile, the regulatory landscape in Europe currently looks much clearer, particularly after the recent passing of the landmark MiCA regulation.

This article originally appeared on The Tokenist